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A Review of Syria’s Economic Sectors and

An Identification of Sectors with possible Investment Potentials

ToR No.: AWP2/044

Experts: Edward Owen & Ziad Ayoub Arbach

DATE: January 2010 PROJECT NO. MEDA/2005/17542

EUROPEAID/122282/C/SV/SY

SSMMEE SSUUPPPPOORRTT PPRROOGGRRAAMMMMEE PPrroojjeecctt NNoo.. ((SSSSPP)) MMEEDD//22000055//1177554422

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DISCLAIMER

This document was produced by the SME Support Programme (SSP) – a private sector development programmed with the overall objective of supporting the development of the Syrian economy through direct assistance to the Syrian private sector. The European Commission funds the SSP based on the financing agreement signed between the European Community and the Syrian Arab Republic, ref.:MED/2005/17542. The SME Support Programme (SSP) is hosted and implemented by the National Institution; Syrian Enterprise and Business Centre (SEBC) in close collaboration with the Ministry of Economy and Trade under a Service Contract for European Community External Actions identification number EuropeAid/122282/C/SV/SY with GOPA. The content of this document is the sole responsibility of the author and can in no way be taken to reflect the views of the European Community nor SEBC or the Syrian Government. The document's recommendations do not entail any legal commitment on the part of the European Commission or the SEBC/SSP. The company/client/reader accepts that this service is without warranty of any kind, explicit or implied. The company/client/reader assumes all risks related to the use of information provided to him or her. In no event is SEBC/SSP liable for any damages resulting from use or misuse of the information provided. The content of this report may be fully or partially reproduced provided that the source is acknowledged.

Published by: SME Support Programme © 2010

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Contents

1. Summary .............................................................................................................................................. 7

1.1. The Terms of Reference ....................................................................................................................... 7 1.2. Considerations ...................................................................................................................................... 7 1.3. Assumptions ......................................................................................................................................... 7 1.4. Work Done ............................................................................................................................................ 8

a. Approach 8 b. A Review based on the Export Trade Statistics 8 c. A review of the Economic sectors based on the Government’s Five-Year Plan

and Executive Reform Plan 10 i. Agriculture, Livestock, Fishing and Forestry Sector 10 ii. Manufacturing, Mining, Energy & Water Sector 10 iii. Building & Construction Sector 11 iv. Wholesale, Retail, Restaurants and Hotels Sector 11 v. Transport & Communications Sector 12 vi. Finance & Insurance Sector 13 vii. Services Sector 14

2. Introduction ....................................................................................................................................... 15

2.1. Background ......................................................................................................................................... 15 2.2. The Terms of Reference and Methodology ........................................................................................ 16 2.3. A Further Discussion of the Methodology used to Identify Opportunities based on the Ability

to Export .............................................................................................................................................. 17 2.4. Some Further Thoughts ...................................................................................................................... 19

a. The importance of the Primary & Secondary Industry Sectors 19 b. Utilities 20 c. Other Services 21

3. A Review of the Syrian Economy ................................................................................................... 21

3.1. An Overview ........................................................................................................................................ 21 3.2. The Agricultural and Forestry Sector (including fishing) .................................................................... 24 3.3. The Mining & Manufacturing Sector ................................................................................................... 29 3.4. The Energy Sector .............................................................................................................................. 31

a. The Oil and Gas Resources 31 b. Electricity Generation 33 c. Public-Private Partnerships 33 d. Renewable Energy Production 34

i. Energy Conservation 34 ii. Renewable Energy Generation 35

3.5. The Building & Construction Sector ................................................................................................... 36 3.6. The Wholesale & Retail Trade Sector ................................................................................................ 38 3.7. The Tourism Sector ............................................................................................................................ 41 3.8. The Transport & Communications Sector .......................................................................................... 45

a. Transport 45 b. Communications 48

3.9. The Finance & Insurance Sector ........................................................................................................ 51 3.10. The Social & Personal Services Sector ............................................................................................. 52

a. Education Subsector 52 b. The Health Subsector 54

4. An Analysis of investment Opportunities based on the Trade Statistics .................................. 55

5. A Development Strategy for Syria .................................................................................................. 61

5.1. Move to high value-added (VA) activities ........................................................................................... 61 5.2. Increase output in those sectors that Syria would seem to have a competitive advantage .............. 62 5.3. Encourage investment in those sectors in which neighbouring countries would seem to have

a competitive advantage in the expectation that Syria would as well ................................. 65

6. The Identification of Development Opportunities based on Syrian Exports ......... 67

6.1. Preface ................................................................................................................................................ 67 6.2. Overview ............................................................................................................................................. 68 6.3. The Sectors where there are perceived opportunities for growth ...................................................... 71 i. HS 02: Meat and edible meat offal ..................................................................................................... 71 ii. HS 03: Fish, crustaceans, molluscs, aquatic invertebrates, not elsewhere specified .................... 72

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iii. HS 04: Dairy products, eggs, honey, edible animal product not elsewhere specified ...................... 73 iv. HS 06: Live trees, plants, bulbs, roots, cut flowers, etc ..................................................................... 73 v. HS 07: Edible vegetables and certain roots and tubers ..................................................................... 74 vi. HS 08: Edible fruit, nuts, peel of citrus fruit, melons .......................................................................... 75 vii. HS 09: Coffee, tea, mate and spices.................................................................................................. 75 viii. HS 11: Milling products, malt, starches, inulin, wheat gluten............................................................. 75 ix. HS 15: Animal, vegetable fats & oils, cleavage products, etc............................................................ 76 x. HS 20: Vegetable, fruit, nut, etc, food preparations ........................................................................... 77 xi. HS 21: Miscellaneous edible preparations ......................................................................................... 78 xii. HS 25: Salt, sulphur, earth, stone, plaster, lime, and cement............................................................ 78 xiii. HS 27: Mineral fuels, oils, distillation products, etc ............................................................................ 78 xiv. HS 30 Pharmaceutical products ......................................................................................................... 79 xv. HS 33: Essential oils, perfumes, cosmetics, toiletries........................................................................ 79 xvi. HS 34: Soaps, lubricants, waxes, candles, modelling pastes ........................................................... 80 xvii. HS 39: Plastics and articles thereof ................................................................................................... 80 xviii. HS 41: Raw hides, and skins (other than fur-skins) and leather ....................................................... 81 xix. HS 42: Articles of leather, animal gut, harnesses and travel goods .................................................. 82 xx. HS 52: Cotton ..................................................................................................................................... 82 xxi. HS 54: Man-made Filaments .............................................................................................................. 84 xxii. HS 58: Special woven or tufted fabric, lace, tapestry, etc ................................................................. 84 xxiii. HS 61: Articles of apparel and accessories, knitted or crocheted ..................................................... 84 xxiv. HS 62: Articles of apparel and accessories, not knitted or crocheted ............................................... 85 xxv. HS 63: Other made-up textile articles, sets, worn clothing, etc ......................................................... 86 xxvi. HS 64: Footwear, gaiters and the like, parts thereof .......................................................................... 86 xxvii. HS 73: Articles of Iron and steel ......................................................................................................... 87 xxviii. HS 84: Boilers, machinery, etc ........................................................................................................... 87 xxix. HS 85: Electrical, electronic equipment ............................................................................................. 88 xxx. HS 94: Furniture, lighting, signs, prefabricated buildings .................................................................. 88

7. Findings and Recommendations .................................................................................................... 89

7.1. Findings .............................................................................................................................................. 89 7.2. Recommendations .............................................................................................................................. 90

a. Industrial Development Council* 91 b. Finance 91

i. Venture capital 91 ii. Long-term loans 91

c. Market Access Support 92 iii. Export Credit Insurance 92 iv. Export Market Information 92

d. Export Processing Zones 93 e. Leasing 93

Tables Table 1 Gross Output of Syria at Producers' Prices in 2006 .......................................................................... 22 Table 2 Distribution of the Syrian Workforce by Economic Activity in 2006 ................................................... 23 Table 3 Gross Output of the Syrian Industrial Sector at Factor Cost in 2006 ................................................. 30 Table 4 Syria’s 10th Five-Year Plan for the Electricity Sector ........................................................................ 32 Table 5 Usage of Electricity in Syria by Sector in 2004 .................................................................................. 33 Table 6 Syrian Tourism: Arab Guests by Nationality ..................................................................................... 41 Table 7 Gross Output of the Syrian Industrial Sector in 2006......................................................................... 42 Table 8 Syria’s 10th Five-Year Plan for the Electricity Sector ........................................................................ 45 Table 9 Syrian Tourism: Arab Guests by Nationality ..................................................................................... 47 Table 10 Syrian Tourism: Other Foreign Guests by Nationality ...................................................................... 58 Table 11 Nights Spent in Syria by Foreigners & Expatriate Syrians in 2006 .................................................... 58 Table 12 Budgeted Projects in Syria’s 10th Five-Year Plan ............................................................................ 59 Table 13 Syrian Exports of (HS52) Cotton in 2006 ........................................................................................... 61 Table 14 Exports of selected textiles, apparel and footwear in 2006 ............................................................... 62 Table 15 Number of Sectors where Growth in Share of World Trade is positive and negative ..................... 63 Table 16 Selected Exports of Syria in 2006 ...................................................................................................... 64 Table 17 Low VA Syrian Exports which seem competitive in World Markets in 2006 .......................... 65 Table 18 Sectors where Syrian Exports could be increased, ........................................................................... 66

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Figures

Figure 1 Gross Output of Syria at Producers' Prices in 2006 22 Figure 2 Distribution of the Syrian Workforce by Economic Activity 23 Figure 3 Syrian Tourism: Trend in Arab Guests by Nationality 42 Figure 4 Syrian Tourism: Trend in Other Foreign Guests by Nationality 43 Figure 5 Syrian Tourism: Nights Spent by Foreigners & Expatriate Syrians

in 2006 45

Appendices

Appendix A An Overview of the Challenges facing Syria ............................................................... A1 Appendix B Summary Export Tables .............................................................................................. B1 Appendix C Exports of Syria, 2006 .................................................................................................. C1 Appendix D Exports of Turkey, 2006 ............................................................................................... D1 Appendix E Exports of Jordan, 2006 ............................................................................................... E1 Appendix F Exports of Tunisia, 2006 ............................................................................................... F1 Appendix G Energy Conservation & Private Sector Involvement in Electricity Generation ............ G1 Appendix H Notes on the Proposed New Institutions mentioned

in Syria’s 10th Five-Year Plan ........................................................................ H1 Appendix: I The Potential for Leasing Operations in Syria ............................................................. I1 Note: Tables referenced in the following text of the report with only a number, such as Table 1, may be found in the main report. If a Table has a capital letter before the number, then it will be found in the Appendix of that letter.

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A Review of Various Economic Sectors in Syria and

An Identification of Sectors with possible Investment Potentials

1. Summary

1.1. The Terms of Reference

The terms of reference, see Section 2.2 of the report, required: The preparation of a review of various economic sectors in Syria, An identification and analysis of the potential of these sectors to perform and

develop better, and Recommendations on most potential & competitive sectors for future

prosperous growth, taking into consideration free trade agreements. 1.2. Considerations In carrying out the above terms of reference, various considerations were taken into account, see Appendix A, specifically: Natural rate of growth of population high at 2.1% per annum. Therefore, there

is an increasing need for: Revenues Foreign currency earnings Jobs.

Need to manage (control) the movement of population to the cities and provide income earning opportunities and better standards of living in rural areas.

Syria has dwindling oil resources. The known reserves will last for about 19

years at present level of pumping. There is increasing demand; peak demand for electricity, which is mainly generated using oil, is actually rising at 9.7% pa. Oil exports are very important in generating foreign currency earning, which will need to be replaced by other exports.

The known natural gas reserves will last for about 39 years at present levels of

extraction. The number of years will probably be reduced greatly once domestic usage is increased, particularly for the generation of electricity, once pipeline connections are made to homes, and exports achieved due to the Arab Gas Pipeline

Water consumption in Syria is presently in excess of water supplies. The water

table is lowering and some wells are starting to draw saline water and in some water resources are becoming contaminated by waste disposal.

1.3. Assumptions

In carrying out the review certain assumptions were made, see Sections 2.3 and 2.4. It is not valid to look only at the domestic market in identifying opportunities and potentials because under free trade agreements, the market place will become ever more competitive. What is successful today; may not compete with imports tomorrow.

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Therefore, the focus of the review was on exports. If one can export then one ought to be able to compete with imports under a free trade regime.

It was also assumed that most services will develop in line with the Increase in population, the standard of living, and demands of agriculture and manufacturing. Therefore, the growth potential for most services is incremental. Very rarely will a review such as this one be able to identify gaps; entrepreneurs will see them long before a reviewer.

The only gaps will occur due to changes in Government policy or the Law. Hence, it was deemed that proposals contained in the 10th Five-Year Plan (2006-2010) and in the Executive Reform Plan (2008-2010) are a guide to new investment opportunities for the private sector which may not have already been fulfilled. 1.4. Work Done

a. Approach

In Section 3, a reviewed was carried out of the 10th Five-Year Plans (2006-2010) and the Executive Review Plans (2008-2010) for:

Agriculture, Manufacturing, Energy, Construction, Tourism, Transport, Education and Health.

For Wholesaling & Retailing, a special review was carried out because this sector was not part of the two Plans.

In Section 5, a review was carried out of each of 97 2-digit HS export trade headings*1 looking at the growth of Syrian exports between 2001 and 2006 and comparing it to World trade in the respective headings.

An assumption was made that if the Syrian exports rose faster than World trade then Syria has a competitive advantage in those products under that heading. Also a review was carried out of exports of Turkey, Jordan and Tunisia in order to compare the findings with those of Syria. b. A Review based on the Export Trade Statistics

As a result of this investigation 51 HS headings were identified as having potential for further development; that is Syria’s export growth was faster than World trade in the respective heading, indicating that Syria has a competitive advantage. They comprised:

10 sectors were where Syria currently exports low value added products as well as higher value added items. In these sectors, there would seem to be a potential to increase value added greatly. The exports from the higher value added products were worth US$ 2 billion in 2006; see Table 10 in the main report.

*1 HS – Harmonised System. The Harmonised System is a method of classifying trade

used by the United Nations. Each digit adds a level of detail to the classification. There are 10 categories at the one digit level, and 97 categories at the 2 digit level. The analysis undertaken for this review looked at 4 digits at the maximum; there are several thousand categories at this level..

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In another 37 sectors Syria’s exports would seem to be competitive in the world marketplace and hence should be able to grow. The exports from these sectors were worth US$ 2.2 billion in 2006; see Table 16 in the main report.

In another 4 sectors, Syria exports low value added products and is competitive. The exports from these sectors were worth US$ 0.9 billion in 2006; see Table 17 in the main report.

There are 4 additional sectors, see Table 15, where Jordan has shown it has a comparative advantage and where Syria has the raw materials and so Syria should also be able to increase value added and export. One of these sectors is HS 27, Mineral fuels, oils and distillation products. Given that in mineral fuels Syria’s resource has only a limited life, rather than export crude oil, it may yield better returns to refine and export the higher value added products.

Alternative way to look at Syria’s potential is to look at Turkey’s exports, see Table 18 in the main report. There are 73 HS headings where Turkey exports more than Syria. In 51 of these, Jordan or Tunisia is also competitive; in 12 Turkey is competitive and in 31 Syria is already competitive. This means that there are 20 where Syria has not proved to be competitive. However, there is little reason why Syria could not gain competitiveness in these 20 sectors.

There would seem to be no real reason why, if Syria has a competitive advantage in so many of the headings that Turkey exports, Syria could not eventually achieve the same exports per head of population as Turkey presently has. If that were so Syria could easily replace any loss of oil export revenue by exports from other sectors.

In the report, in Section 6.3, analyses have been provided for 30 of HS headings where Syria seems to have a competitive advantage. The data provided includes the exports of subsectors, the growth in value since 2001, and the growth in share of World trade since 2001. Where provided by the International Trade Centre, part of the UN system and based in Geneva, an assessment of the subsector is given and the value of exports to the main countries purchasing the exports.

The 30 HS headings selected is quite arbitrary; there remains a further 20 or so headings which could be similarly examined. Syrian exporters in each of these Sectors, providing they know the technologies involved and have contacts with purchasers in foreign countries should be competitive.

What is important is that these exporters are supported and encouraged and enabled to continue exporting. The fear is that once these exporters have reached the capacity of their factories or selling the maximum to their known partners in foreign countries they may stop developing. In order for this not to happen, it is up to the Government of Syria to play its part; that is:

Establish a high level Industry or Investment Development Council (Appendix H) Enable domestic banks to offer long-term loans to industry by the creation of a

fund or a lending window in the Central Bank (Appendix H) Facilitate the establishment of equity capital funds (Appendix H) Encourage the establishment of export credit insurance brokers (Appendix H) Facilitate the establishment of real estate leasing companies (Appendix I) Facilitate the establishment of export processing zones and factories (Appendix

H) Facilitate the provision of export market promotion and advice (Appendix H) Establish a budgetary line for funding export promotion.

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In Section 3 of the report, a review of the 10th FYP (2008-2010) and the ERP (2008-2010) with regard to the main economic sectors was carried out. It was noted that in several cases, transport being one that the Government does not implement all of the plans that it budgets. It seems that this is not because those plans are not worthwhile. Rather it seems that the management of the plans are too much for the ministries to manage within the time allotted. It would seem that it may be better for the government not to implement all the projects itself, but rather turn to the private sector and offer the projects as Public-Private Partnerships (PPPs) or Build, Operate and Transfer (BOT) projects. However, even such projects require a good deal of design, management and monitoring.

c. A review of the Economic sectors based on the Government’s Five-Year Plan and Executive Reform Plan

Looking at the 9 economic sectors studied in turn:

i. Agriculture, Livestock, Fishing and Forestry Sector The Sector provides 17% of the Gross Output of the Economy (20% of the Gross Domestic Product – GDP)

10th FYP envisages: Major drainage, irrigation and water treatment projects A potential for PPP and BOT projects Trees cultivation for firewood A potential for BOO projects, such as: charcoal for transporting fuel and for

drying crops Insurance against natural crop failures.

This would be a major commitment and would need very careful assessment of rates and claim terms; but it would enable lending to agricultural communities, which could lead to the consolidation of holdings. This is important for raising quality, providing reliable outputs, essential for competing in World markets.

The recent rise in World food and industrial crop prices provides the Government with a chance to withdraw from subsidising and fixing minimum prices. This will enable private sector investment in agriculture and particularly will enable investments in adding value ii. Manufacturing, Mining, Energy & Water Sector This sector provides 40% of the Gross Output of the Economy (27% of GDP)

Manufacturing Subsector

The 10th FYP envisages 15% pay increases 19% pa in 11th FYP Many new initiatives are discussed in the Executive Reform Plan, which are deemed necessary to achieve these growth rates, see Appendix H. Most important are in the Executive Reform Plan are:

An Industrial Modernisation Centre A single centre would have little impact; rather the way forward is that every enterprise helped and in turn becomes a modernisation centre to help others

An Export Promotion Centre To help exporters find additional markets

Export Processing Zones

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It is important that goods imported are cleared in the processing zones, not at the border. Individual factories should become zones

An Industrial Development Fund Preferably more than one fund to provide equity finance and long-term loans.

These institutions should be set up, together with an Industrial or Investment Development Council. What is crucial is that the Council must have a very good secretariat which has the authority to obtain data, reports and assessment papers from any Ministry or Public body. Further institutions should be considered, such as an Export Credit Insurance Brokerage and Leasing companies, see Appendix I, especially those able to build and lease out industrial premises. Energy Subsector The oil resources have a limited life of about 19 years at present levels of extraction. However, demand is growing rapidly. There will be the potential to replace the usage of oil in electricity generation by natural gas as well as supply gas to homes and commerce for heating, cooling and cooking. Gas has a 39 year life at present levels of extraction, but greater use will reduce the life. The construction of the Arab Gas Pipeline will enable Syria to export gas and once the national resource is depleted to import gas. Nevertheless, there are prospects of finding more reserves of oil and gas. There seems to be scope to establish Public-Private Partnerships in energy generations. The problem, facing the designers of such partnerships, is how best to handle subsidies. Although subsidies are given out generally, it is likely that subsidies will always be necessary for the most needy of the population. In Appendix G, an approach to structuring such PPPs is given. The Executive Reform Plan (2008-2010) discusses the possibility of both conserving energy and exploiting renewable resources. Both these approaches would seem to have considerable potentials. iii. Building & Construction Sector The Sector provides 4% of the Gross Output of the Economy (3% of GDP) The 10th FYP envisages: The establishment of specialised contracting companies The development of professions associated with construction That state-owned enterprises are to be restructured to operate like private

companies. The major sources of business for the sector is predicted to come from the private sector for tourism projects and from the state for drainage and irrigation projects, among others iv. Wholesale, Retail, Restaurants and Hotels Sector The Sector provides 14% of the Gross Output of the Economy (21% of GDP) Wholesale & Retail Subsector

There is a lack of study of this sector

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Traditionally, worldwide mark-ups have been high and this has attracted investors who combine the two operations and create hypermarkets. This development is just starting in Syria with firms like Grand Mart. The Mall developments like, Cham City Centre, Queen’s Centre, and Town Centre, are really real estate developments. However, they will attract shops away from the city centres. The challenge will be to stop the city centres becoming ghost towns.

Small shops will need to club together in order to survive. They need larger margins to survive on low turnovers and the ability to sell greater ranges of products. In Europe, small retailers have banded together to carry out their own wholesale operations. Spar is one such “club” with the profits going back to shop owners. It has 16,000 members in 32 countries

A Syrian Spar could be a way to preserve the small general stores, especially in rural areas.

Tourism Subsector

There is a big potential, but tourists seem to be affected by regional problems. The growth hides many trends: The rise in Lebanese and Iraqi tourists; seeking relief from their problems in

their countries The decline in Arabian, other Arab tourists and European tourists in 2006, again

due to regional problems The decline but recent partial recovery of Iranian tourists The rise of Turkish and other foreign tourists The levelling off of expatriate Syrian visitors. There is a decision to be made in Syria: whether to go for mass tourism or discrete tourism. It may be possible to have a little of both, but often the existence of mass tourism puts off discrete tourists.

Developers will push for mass tourism because of the real estate development potential. The question is how much money will actually return to Syria and will mass tourism lead to water shortage problems and major infrastructural costs.

Usually, discrete tourists will spread the tourist pound more widely and will cause less negative impact. v. Transport & Communications Sector This Sector provides 9% of the Gross Output of the Economy (11% of GDP)

Transport Subsector

The 10th FYP foresaw the private sector taking an increasing role and 203 projects were listed. However, the ERP deemed that the projects were not sufficiently prepared and the Ministry lacked the capability to manage the PPP and BOT projects.

Hence, the focus changed to upgrading the Ministry. Now the ERP is presenting only 4 projects to the private sector:

Development of Tartous port – 2 new berths and associated terminals Development of Lattakia port – a dedicated and privatised container terminal Maintenance of the West to east railway lines from the ports An urban traffic management scheme, including paid parking, traffic control and

rapid transit bus network.

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Communications Subsector

Telecommunications There is a recognition that the Syrian Telecommunications Establishment needs

to be recapitalised and allowed to operate more like a private company. Government let out 2 BOT contracts for the development of cell phones. These

seem to have been very successful, at least coverage has stretched to most urban areas and the use is very widespread.

This approach used should be guide for more BOT projects and possibly would be the simplest approach to development rather than restructuring state enterprises to be more entrepreneurial and innovative..

IT and Internet The Syrian Computer Society (SCS) is providing access to World Wide Web

through another BOT project. However, the introduction of other value added services has not been very successful. The General Wireless Communications Establishment was set up to develop and sell VA services but to date little has been achieved. It seems the problem is in identifying services that are really needed.

There are some 130 companies linked to SCS. Most are importers of IT equipment and software. Only 25 specialise in software development and IT services and of these only two actually export their services export. Still in Syria most companies seeking IT solutions approach Jordanian or Egyptian companies.

Postal Services The General Establishment of Post is only just breaking even and facing

competition from informal sector in money transfers and parcels. The GEP seems uncertain how best to react to this competition and legislation probably would not be the correct response. Rather the GEP could emulate the services provided by others and try to use its size and reach to improve on them.

10th FYP & ERP The 10th Five-Year Plan and the Executive Reform Plan are proposing the introduction of software incubators where software developers could set up their businesses with common facilities and expert support in order to develop “Arab” versions of business, cultural and entertainment software, rather than be so reliant on imports.

Also to address the issue of skilled manpower shortage, the plans are advocating the establishment of vocational training centres specialising in IT.

In emulation of the science parks and cities which have been successfully established in the Arabian Gulf region, the plans are suggesting the creation of at least two technology zones in Syria. vi. Finance & Insurance Sector This sector provides 4% of the Gross Output of the Economy (6% of GDP).

The sector has not been studied in this review in depth, because it has been studied as part of other projects in recent years. However, as part of the review of other sectors, it has been noticed that there are still important gaps in financial and insurance services. Most noticeably there is a lack of long-term loans, venture capital (equity finance), leasing, and export credit insurance.

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Specifically, it has been noted that in recent years, there has been some major achievements by Syrian agriculturalists and manufacturers, but this development may not be able to be continued without access to the financial services, mentioned above. Some of these deficiencies have also been noted by Government and were mentioned in the Executive Reform Plan (2008-2010) for Manufacturing with proposals for new services to overcome these deficiencies. Comments have been made in Appendices H & I on these specific initiatives. There are presently operating in Syria six specialised state-owned banked, each focusing on specific banking services. The largest is the Commercial Bank, and then there are the Agricultural & Cooperative Bank, the Real Estate Bank, the Industrial Bank, the Savings Bank, and the Popular Credit Bank. There are also several informal finance houses operating according to Sharia rules. Some of these finance houses are large and have a major impact supporting trade and the purchase of capital equipment. More recently a number of foreign and locally-owned commercial banks have been permitted to set up in Syria. In addition, three banks have established operating under Sharia Law and a further three Islamic banks have been authorised by the Central Bank. There are also other semi-banks operating, such as the Agency for Combating Unemployment, which provides funds through the formal banking system to help would-be entrepreneurs to set up their own businesses.

vii. Services Sector Social & Personal Services provide 3% of the Gross Output of the Economy (3% of GDP) Government Services provide 8% of the Gross Output of the Economy (10% of GDP) Private Non-profit Services provide <1% of the Gross Output of the Economy (<1% of GDP)

For this sector only two components have been studied; Education and Health.

Education Subsector

The 10th Five-Year Plan and the Executive Reform Plan mentioned the following:

Schools Will allow the private sector to share in the education task Will establish boarding schools for nomads

The report suggests that boarding schools could be set up for the children of expatriate Syrians and for the children of foreign Arabs Universities There are 8 private universities and many more are planned The government hopes to attract students from abroad as has happened in

Jordan. The 10th FYP target is that 10% of all students should be from abroad

Research The ERP is seeking to establish a network of Syrian researchers abroad who

can be approached for their advice and assistance relating to domestic issues.

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Health Subsector

10th Five-Year Plan and Executive Reform Plan: Proposes the introduction of competition in the health service It wishes to transform public health institutions into independent bodies and

develop a contractual system It proposes a unified healthcare standard for public and private health care

services It is seeking increased cooperation between the public and private hospitals. The report suggests the creation of quality medical facilities to attract foreign patients.

2. Introduction

2.1. Background Syria is facing, in common with many other developing countries, quite severe challenges in terms of dwindling exploitable natural resources, rising population numbers with many entrants to the job market whose expectations and aspirations have to be met, and the need for major and costly infrastructural investments. These issues have been discussed in greater depth in Appendix A. They set into context the work that has been carried out in this project; that is to review the sectors of the Economy to describe their situation and identify, when data can be obtained, those subsectors in which there are potentials for development.

The issues, discussed in Appendix A, lead to the conclusion that there is an immediate and on-going need to develop: Firstly, export-orientated ventures which can, at least to some extent, replace

the decline in revenues earned by oil exports, and Secondly, business ventures capable of providing long-term and worthwhile job

opportunities for Syrians of working age. And thirdly, such ventures should be capable of earning profits and thereby enable the Government to earn tax revenue. The order of the above 3 points above has been done consciously. What is most pressing for Syria must be to replace the likely loss in oil export earnings. Once that has been achieved, providing jobs will be easier and so will tax income for the government. The export nature of most of the opportunities that this review has identified should earn foreign currency with which the country can pay for needed imports. As the data provided in Appendix A illustrates, there is an immediate need for investment in energy, as well as other infrastructural projects. To this end, there is a need to develop a scheme by which private sector ventures can enter the electric power generating sector and, thereby, alleviate the need for Government to find the necessary financial resources.

In doing so, scarce Government capital would be released for other urgent social development expenditure. The criteria for such a scheme must include the ability to

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separate any subsidy element, which may be needed for social reasons, from the commercial element of generating, distributing, and selling electric power. Once the subsidy element is separated from the commercial elements, it becomes easier to manage and direct to those who need it most; see Appendix G. Perhaps beyond the scope of this project, because it would require a degree of specialised technical knowledge for each venture identified, criteria could be set, at a future date, to select the sectors and subsectors whose ventures would be efficient or low-volume users of water. Possibly, those which are large users of water could still be acceptable if they could be located in regions where water shortages are less immediate. Hence, the process may not be one solely of selecting or rejecting opportunities but also of considering alternative locations for ventures. 2.2. The Terms of Reference and Methodology In order to carry out the Terms of Reference, that is to: Review the various economic sectors in Syria, and Identify and analyse the potential of these sectors to perform and develop

better, and Provide recommendations on most potential & competitive sectors for future

prosperous growth, taking into consideration free trade agreements, it was necessary to adopt some form of methodology which will give a practical way of reviewing all sectors and an objective way to identify and analyse the potential of the sectors. Moreover, if recommendations are to be made, they must be supported by evidence. In addition, criteria needed to be established to govern the process of selection which, while they may be challenged, they must be reasonable and logical enough to be acceptable for this study, and those who may challenge them unable to replace them with an overall approach which is more reasonable or logical and could be untaken in the time allotted for the project 50 man-days (40 man-days for an international consultant and 10 man-days for a Syrian consultant). For the agriculture, fishing, forestry, mining and manufacturing sectors, an approach immediately could be seen. The terms of reference has explicitly stated that free trade agreements had to be taken account of. In any case, the World is moving more and more towards the free trade of goods; therefore, looking at businesses supplying the home market would require very detailed study in order to ascertain whether or not they could compete with imports*2 as trade barriers were lowered. This would be a major exercise and was not intended for this review. However, if the manufacturers and traders in a sector are able to export successfully, it would be an indication that they would be able to compete in any free trade area. Obviously, there could be exporters who were benefiting from concessionary access to foreign markets and such concessions may not be long lasting. Hence, simply exporting would not be a sufficient criterion to identify potential. So the criterion was chosen that the exports had to be increasing their share of World markets over time.

*2 Or rather, how they can be upgraded and re-engineered to compete with imports and

whether it is worth the cost and whether the cost can be funded.

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For the other sectors, there was no statistical approach possible to identify potential. Really, there is no alternative to in depth studies and intimate knowledge of the sectors. So the approach taken has been to review the 10th Five-Year Plan 2006-2010 and the Executive Reform Plan 2008-2010 for each sector. At least, this would indicate those plans of the Government which may affect the private sector and give rise to development opportunities. In addition, consideration was taken into account of the latest developments in the Syrian Economy and developments which have taken place in other countries which may be of relevance to Syria. 2.3. A Further Discussion of the Methodology used to Identify Opportunities

based on the Ability to Export

The project has identified a large number of investment opportunities within 30 subsectors. These subsectors have been identified by the Harmonised Code used internationally to define trade categories. Each one is discussed in turn in Chapter 6 below. Something very important has been noticed during this review: Syria is in a (probably temporary) position whereby it seems that it has a competitive advantage in almost every agricultural, mineral and manufacturing sector and subsector in World markets. This would seem to bode well for Syria as a member of GAFTA3. By the same analysis, Turkey seems to have a competitive disadvantage. These features regarding the relative competitiveness of Syria and Turkey have been noticed with reference to the primary means of analysis chosen for the review. The means chosen was the change in the share of Syrian or Turkish exports in World exports for every sector of physical trade recorded by the statistics of external trade*4. The assumption made was that, if the Syrian share of World trade was growing, the sector in Syria must have some sort of competitive advantage. Table B1 (that is the first Table in Appendix B) provides for 97 Harmonised System headings the share of World trade in that heading achieved by Syria in 2006 and shows the annual percentage change in the growth in the percentage share on a yearly basis since 2001. Products which show a consistent improvement, that is an increase in World market share over the years, no matter that they started by losing market share, would seem to demonstrate that the enterprises in the sector have achieved a competitive advantage; these have been shade purple in Table B1. Therefore these enterprises should be able to continue to grow and increase their market share in the near future. Moreover, new entrants to the sector, providing that they have been set up correctly, that is with the same competitive attributes as the existing enterprises, should also be able to grow and increase further the Syria’s share of that sector’s World exports. A trend line was calculated for each sector and those which showed a negative trend, but had positive growth in 2006 were shaded in grey. It was thought that these sectors could still be worthwhile, but they showed extreme volatility and therefore required more investigation. The reason for the volatility was mainly due to the fact that they

*3 GAFTA – Greater Arab Free Trade Area. *4 The Central Bureau of Statistics of the Government of Syria publishes the trade

statistics in detail by commodity and by country of export and import. Currently, the data is available for the year 2006.

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were very new export sectors for Syria or were very small and so even a moderate change resulted in large percentage swings. Of course, there may be external factors which might stop the growth from continuing into the future and these have been discussed in detail in Chapter 3 below. Hence, every sector will perhaps need further scrutiny. However, from the brief investigations made so far it seems that although there are constraints, they apply across the agricultural and industrial sectors, rather than being particular to individual sectors. At the same time that data was extracted for Syria, similar data was obtained for Turkey, Jordan and Tunisia*5 also for the year 2006. Turkey was chosen because it is a neighbour and has many similar resources, cultural characteristics, and conditions. Moreover, the history of both countries is linked and this particularly affects the traditional craft industries of both countries. However, Turkey has currently a more developed economic base which, possibly, Syria could attempt to emulate.

Jordan was also chosen because it was a neighbour and had some similarities in terms of agricultural potential. However, some care is needed in interpreting Jordan’s results because of its special relationship with the USA. Tunisia was chosen because it is in a similar geographic situation, but it may illustrate new development potentials, which had not been thought of in the Syrian context, but still could be valid. Its longer association with the European Union may indicate market potentials for Syria.

Other countries; such as, the Lebanon were not chosen because of the long-running political crises affecting the country; Cyprus was considered, but was felt to be too small in relation to Syria; Egypt was not considered because it is too big, especially in terms of population.

It was not realised before the analysis was undertaken that, according to this chosen means of analysis, for almost every sector Syria would have a competitive advantage. See Table B2 in Appendix B for a summary of the exports of Syria and the three chosen country for comparison purposes and their respective growths in the share of World exports.

Nevertheless, the logic is there. Syria’s currency has followed the devaluation of the US Dollar compared with most of the other widely used currencies for trade; while at the same time, it seems that price inflation has not eroded the advantage AS YET*6. For Turkey, it seems that its currency has followed the rise in the exchange rate of the Euro, pricing Turkish products out of its markets and enabling imports to capture an ever higher share of domestic markets.

However, before too much applause is given to the wisdom of Syria’s strategy and the folly of Turkey’s, it may be that Syrian exporters have only a short time to enjoy their

*5 The data was obtained from the International Trade Centre in Geneva via the World

Wide Web. Each country in the World normally publishes its trade statistics and some 184 countries, including Syria, pass the information to the International Trade Centre (ITC) in Geneva which compiles and tabulates the information and corrects errors and omissions and inconsistencies. The data is available based on the Harmonised System (HS) of classifying and summarising products. It is this data from the ITC which has been used in this report.

*6 It is a challenge for the Government to ensure that Syria’s competitive advantage is not

lost.

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new markets before imported inflation erodes its advantage*7. Similarly, for Turkey, although it may have lost market share, the restructuring going on in their companies, caused by the loss of competitiveness, may eventually make those companies World beaters*8. It would seem to be critically important for the Syrian Government to realise that Syrian exporters do have a competitive advantage in World markets. The true nature of that competitive advantage should be understood well and nothing should be done to lose that advantage. 2.4. Some Further Thoughts a. The importance of the Primary & Secondary Industry Sectors There was a concern that while a clear methodology had been found for the agricultural, mining and other extractive industries and in manufacturing, there was a dearth of information for all other sectors, which would lead to the identification of potentials. Hence it was decided to review the Government’s 10th Five-Year Plan for 2006-2010 and the Executive Reform Plan for 2006-2008 as the Government is a critical player in the Economy and its plans and changes in policy will affect the private sector. However, for Syria, it is agriculture, mining and manufacturing sectors which are most important sectors in the Syrian Economy. These sectors are creating valuable products which are demanded both domestically and abroad. In so doing, they create demand for services; such as, transport, wholesaling and retailing. Hence, they have a multiplier effect in terms of employment and business activities. The attraction of these sectors is that the marketplace is not just Syria but the whole World. Hence, the employment opportunities and the opportunities to earn income and foreign currencies are almost boundless. Given Syria’s needs to generate employment opportunities and foreign currency earnings, these sectors are vital. It is thought that focusing on the domestic market and the needs of the domestic market would be totally insufficient in scale to provide the income to replace the declining revenues from oil and to provide the job opportunities needed by a rapidly and ever-growing population. Only the export markets are large enough to meet these needs. Of course, if a business is capable of exporting and competing in World markets, then it should be capable to competing with imports. Moreover, there is always a risk in promoting import replacement because enterprises engaged in the domestic market can always turn to Government for protection from import competition, instead of taking the necessary actions to maintain their competitiveness. In doing so, they would be actually seeking to raise the price of imports to the detriment of all consumers and adding to price inflation for the benefit of their personal business interests and comparatively few employees. *7 Hopefully, the opening up of the Syrian market under the various free trade agreements

will hold down any inflationary tendencies. *8 In the 1980s, the UK underwent a similar rise in the value of its currency (Sterling) to

that facing the Turkish Pound, which forced many companies out of business, but those which remained became World beaters. The UK now has one of the lowest unemployment rates in Europe.

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However, the loss of export competitiveness is either clearly the fault of the management of the venture or a failure in government policy to maintain an efficient economy; both of which can be addressed without harming domestic consumers. In order to be successful, exporters will need finance at low cost, at least no more expensive than provided to competitors; land and buildings at a competitive cost; imports for further processing without taxes or duties; utilities, labour and other inputs at no more cost than incurred by competitors. b. Utilities The demand for the products of Utilities, such as electricity, gas, water, sewage disposal, etc, unless exportable*9, are linked to the rate of increase of the population (or rather to their standard of living which, hopefully, rises faster than the natural rate of population increase) as well as to the industrial and commercial base of the country. There may be opportunities for the private sector to invest (and a need for investment) in utilities but this is primarily due to a government desire not to increase its own commitments to invest and spend and its belief that the private sector can (or should) take on the responsibility. With the traditional forms of power generation, such as oil-fired power stations or even gas-fired power stations or the conversion of existing oil burners to gas burners, the investments may stand out because of their high capital cost, but numerically and employment-wise, they may be small. However, there is a major potential to develop alternative schemes for energy production, such as solar panels, biomass-to-energy, methane extraction from refuse tips, heat pumps, micro-hydro schemes, wind power, and photovoltaic cells. These would be many and small investments. If the government were prepared to buy the electricity at its true cost to the Government, then many such projects would be immediately viable. There is even the potential of harnessing the sun’s rays for solar thermal power stations. The first in Europe is outside of Seville in Spain and is operated by Solucar*10. The capital cost of this landmark development was such that it is not competitive at US$ 40 per barrel, but should break-even at US$ 120 per barrel. Three more such stations are planned, taking into account the lessons learned from the first project, and should be very much more financially attractive. There are other projects using a slightly different technology operating the USA. Such developments could be possible for Syria, once the government sets out its policy for buying electricity over the long-term from the private sector*11.

*9 It is possible to export water and gas by pipe and electricity by transmission line. In

fact, Syria does export and import small amounts of electricity. *10 The solar power station producing 11 MW by using 600 mirrors focused at the top of a

115 metre high tower which heats oil to 4000 C and, in turn, heats water to steam which then drives turbines to generate electricity. Some of the hot oil is stored to heat water at night so enabling the plant to operate 24 hours per day.

*11 A long-term purchase price could be set taking into consideration the World market

price for oil and gas and could have a factor included which would reduce the price for technological change. The schemes could also be on a Build Operate transfer basis.

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c. Other Services Other services, such as banking, business services and personal services are again linked to the industrial and commercial activities and to the wealth of the population (poor people rarely can afford to buy services). Hence, the opportunities generally evolve and are mainly taken up by the expansion of those enterprises already providing the services. However, a few new entrants may squeeze in; especially due to technical developments. Nevertheless, sometimes opportunities may be thrown open due to a change in the law which enables further development to happen*12. Of course, there would be chances to sell such services to foreigners (the equivalent of exporting), but that presupposes an already well-developed and well-respected sector. Something quite possible for Syria, but it would need effort over a period of time and really is beyond the time horizon of this project. Services, such as medical care and education are again primarily a role undertaken by government or by societies and charities. The opportunities for the private sector are mainly due to the government permitting private investment and seeking public–private partnerships because it lacks the investment funds. If there is increasing wealth, then people may opt to “go private” and effectively pay double (to the Government in tax and to the private sector provider in fees). But this again evolves; the opportunities are incremental unless the Government opens up the market. Tourism is another service, but has opportunities bounded only by the intrinsic attractions of the country in “sun, sand and sea”, and in scenic, historic and cultural resources. Syria possesses all of these things and so, potentially, has great opportunities in this field.

3. A Review of the Syrian Economy

3.1. An Overview Table 1 tabulates the main components of the Syrian Gross Domestic Output*13 at producers’ prices for the year 2006 and it may be seen that the largest sector is mining and manufacturing with 40% of gross output. Most of the contribution is from mining in terms of the extraction of crude oil. The second largest sector is Agriculture and Forestry with 17% of gross output.

*12 The Government decided in 2000 to let out contracts on a Build Operate and Transfer

basis to provide cell phone coverage in Syria to three private companies; so far two companies have been selected.

*13 Gross Domestic Output (GPO) is different from the more usually calculated Gross Domestic Product (GDP). GDP is more or less equivalent to value added; that is the mark-up made by activities over and above the cost of material inputs. GPO is the equivalent to the sales value of the activities; that is material inputs plus value added.

In summing the GPO of all the activities in the Economy, there will be some double counting of material inputs, but when looking at each sector in turn, the GPO gives an indication of the output (sales) of the activities/enterprises in the sector. The value of GPO would be recognisable to entrepreneurs as the size of their market. Particularly if one is interested in estimating the proportion of output that is exported or in estimating import penetration, then one must compare GPO with trade data.

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Figure 1Gross Output of Syria at Producers' Prices

in 2006

Agriculture & Forestry Mining & Manufacturing Building & Construction Wholesale & Retail Trade

Finance & Insurance

Social & Personal Services

Government Services Private Non-profit Services

Customs Duties

Transport & Communications

Government services account for another 8% of gross output; however, state-owned enterprises will be included in the other economic sectors. This component comprises the government administration, including education, health, etc, and the armed forces.

Table 1Gross Output of Syria at Producers' Prices in 2006

(at current prices in SP millions)

Sector Total

1 Agriculture and Forestry 506,538 17 2 Mining and Manufacturing 1,184,474 40 3 Building and Construction 122,581 4 4 Wholesale and Retail Trade 417,286 14 5 Transport and Communications 274,820 9 6 Finance and Insurance 116,751 4 7 Social & Personal Services 87,112 3 8 Government Services 221,845 8 9 Private Non-profit Services 1,281 0

10 Customs Duties 17,200 1

Total 2,949,888 100 In order for the total gross output to equal the two other ways of looking at the economy of a nation; that is by considering total gross income and total gross expenditure, customs duties have to be included with the output analysis. Obviously, customs duties are not a sector, but they provide a contribution to the Economy in the same way that the output of, say, agriculture does. Figure 1 provides a diagram to illustrate the respective components of Gross Output. This data relates to the gross output of enterprises rather than the more usually calculated gross domestic project which basically relates to the value added by activities. The difference is that the cost of inputs is included in the gross output. It may be seen that the largest sector is mining and manufacturing with 40% of gross output. Most of the contribution is from mining in terms of the extraction of crude oil. The second largest sector is Agriculture and Forestry with 17% of gross output.

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Government services account for another 8% of gross output; however, state-owned enterprises will be included in the other economic sectors. This component is only government administration and the armed forces. Another way at looking at the Economy as a whole is through the employment statistics. A labour force survey was undertaken by the CBS in 2006 and respondents were asked in what sector they were employed. Table 2 provides the results of the survey and Figure 2 provides a diagram to illustrate the various sectors employing the workforce.

Table 2 Distribution of the Workforce in 2006 (15 years and over) by Economic Activity

Sector Total Female Male 1 Agriculture & Forestry 951,599 20 169,672 27 781,927 182 Industry 724,814 15 50,180 8 674,634 163 Building & Construction 650,646 13 4,754 1 645,892 154 Hotels, Restaurants and Trade 758,940 16 28,221 4 730,719 175 Storage, Transport and Communications 353,704 7 8,253 1 345,451 86 Finance, Insurance & Properties 111,585 2 11,157 2 100,428 27 Services 1,308,660 27 358,000 57 950,660 22

Total 4,859,948 100 630,237 100 4,229,711 100 The numbers in the workforce are fairly low at 4.9 million out of a population of 18.9 million, reflecting a comparatively high dependency ration of 3.9 persons per worker. However, of these persons in the workforce, 1.3 million are working on their own account, a further 0.4 million are unpaid workers. Employers account for 0.5 million which would seem large and reflects the number of micro- and small businesses. The number of paid workers is comparatively small at 2.6 million. However of these 1.4 (52%) are employed by the Government. Female participation is fairly low at only 14%; however, they remain a resource to raise living standards if they can be found paid employment. The major employer in the Economy is the Service Sectors with 27% of the workforce. However, this includes Government services, which employs 84% of those in the Sector. It is noteworthy that 57% of the female population are employed in Services, compared to 22% of men. The next most important sector is Agriculture and Forestry with 20% of the workforce.

Figure 2Distribution of the Workforce by Economic Activity

Agriculture and Forestry

Industry Building & Construction

Hotels, Restaurants & Trade

Storage, Transport & Communications

Finance, Insurance & Properties

Services

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3.2. The Agricultural and Forestry Sector (including fishing) Syria has several distinct geographic environments, which permits the production of many differing sorts of agricultural crops, including many crops for industrial purposes, such as cotton, and food crops, such as wheat, vegetables and fruits, in addition to raising animals, maintaining forests, and fishing. The regions are: The South comprises nearly 16% of the total land area and includes Damascus,

Dera’s, Al Sweida and Al Quneitra and is a major fruit growing area where also chickpeas, tomatoes are produced and cattle raised;

The Centre, around Homs and Hama, accounts for nearly 28% of the total area

and grows sugar beet, onions, potatoes and almonds; The Coast is the most productive region around Latakia and Tartous, and grows

almost 98% of Syria’s citrus fruits, 42% of its olives, 55% of its tomatoes and 56% of its tobacco;

The North includes Aleppo and Idleb and produces lentils, chickpeas, olives,

and pistachios as well as raising 20% of Syria’s sheep; The East, along the Euphrates River, is noted for cereals, cotton, and lentils;

much of it under irrigation, The Badia, which includes Palmyra, is where the bulk of Syria’s livestock is

raised; the land is often marginal for agriculture and livestock. This diversity gives Syria a certain amount of stability in that the range of crops produced can be very large. The extent of land amenable to agricultural exploitation is also large, though the water usage has to be managed and irrigation is vital in many areas. Agriculture is one of the key economic sectors in Syria in terms of its contribution to the GDP; employment; balance of trade. It provides fresh food for the population and raw materials for manufacturing and processing, as well as a surplus for export. Providing inputs to the sector, such as fertilisers, pesticides, equipment, and finance and enabling the produce to be marketed and transported to the centres of population and the ports for export, creates many additional jobs in the Economy. The agricultural sector contributes about 17% to Gross Output, but between 25% and 27% of the Gross Domestic Product. In addition, agricultural products contribute to 16%-22% of total exports (depending on pre-harvest climate conditions). If one considers the cooperative sector as private, then almost 98.5% of total agricultural investments are made by the private sector with a further 1% by public-private joint ventures and only 0.5% for the public sector. There is a major problem looming for agriculture in terms of a history of bad land management*14 and especially in the over-exploitation of, mainly, non-renewable water

*14 The perceived poor management is linked to the fragmentation of land ownership due

to the increasing population which prevents efficient cultivation. There is also a lack of

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resources*15, both by agriculture and urban development. Rainfall seems to be reducing slightly year by year, whether this is cyclical and may rise again in the years to come or permanent, possibly due, directly or indirectly, to global warming, is unsure. The Government estimates that current water shortage is over 3 billion cubic metres per year*16. The problem is most noticeable in the river basins of Barad, Al-Aaawaj, Tigris and Al-Khabour. Syria’s population is likely to have reached 18.9 million by 2006 and is continuing to rise steeply. The urban population constituted 53% against 47% rural. Syrian is typical of many countries in the region with its young population, 15 and below years old, constituting around 39% of the population. People working in agriculture constitute around 20% of total workforce which, according to 2006 figures, amounted to 952,000 people (82% males and 18% females), which constitute nearly 20% of all employed workers. However, looking at the population statistics, there were an estimated 4.8 million people of working age (15 to 59 years old) living in rural areas in the year 2007. Most of these people would directly or indirectly be dependent upon agriculture for their livelihoods. People working in the public sector in agricultural and irrigation according to 2006 survey were 26,566, which constitutes 2.8% of the total number of workers in the sector. Agricultural gross output achieved a growth, year-on-year, of 4.07% per annum in real terms between 2000 and 2006, whilst the agriculture’s contribution to GDP grew by 4.56% per annum. The differing growths would imply a slight improvement in efficiency over the years. Over the same period, the area of cultivated land has been increased by 3 per cent, with irrigated land increasing by 5 per cent. The Government’s response as revealed by the 10th Five-Year Plan (FYP) is wide ranging. It includes the establishment of water information centres for the seven water basins in Syria (Badia, Al Yarmuk, the Mediterranean coast, Euphrates/Aleppo, Orontes, Barada/Al Awaj, and Al Khabour/Tigris). These centres would constantly measure changes in the ground water levels, dam water levels and river flow quantities to inform about the available water, which should lead to better management and the prevention of schemes which would lead to the exhaustion of the resources. Hopefully, it should lead to all new developments, no

financial resources available which sometimes leads to inappropriate seeds sown, and poor application of pesticides and fertilisers (sometimes the wrong sorts, sometimes too much applied and sometimes too little), as well as poor storage of harvested crops and slow transport to market. The lack of financial services also leads to the inability to consolidate land holdings and to the introduction of mechanisation. The poor management or insufficient training leads to higher than necessary post-harvest losses and sometimes inappropriate crops planted.

*15 The poor management is particularly acute related to irrigated-land which may be more

fragile than traditional areas of cultivation and can be easily exhausted by too intensive use and a lack of appropriate crop rotation.

*16 Consumption is estimated at 18 billion m3, while water available is estimated at only 15

billion m3. The data is contained in the Executive Reform Plan, 2008-2010, for agriculture and Irrigation. However, better management and reduced wastage would probably solve the situation at least for the time being.

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matter whether urban, industrial or rural to include an impact assessment on the basins and for the centres to monitor the accumulated impact of developments.

The impact of waste-water on the basins will be monitored and managed better in order to reduce contamination. Again hopefully, all new developments should include an impact assessment. The 10th FYP envisages: Transforming 50% of the land currently irrigated by old irrigation methods to

more modern methods Expanding agricultural drain networks in lands suffering from drainage and

salinity problems, especially in the Euphrates basin, by at least 10% annually. The construction of 300 new waste-water treatment plants.

Exploit more fully the Syria’s quota of water which can be taken from the

Euphrates River and the volume of water allowed to pass from Jarablos on the Turkish-Syrian borders according to the signed agreements by increasing the amount of water-fed agricultural land, especially in the southern Aleppo plains.

If possible, the private sector should be encouraged to invest in these developments. There are schemes which have been adopted in other parts of the World whereby the private sector can be brought into an effectively monopolistic situation with a scheme which constrains either the mark-up or the return-on-capital and which prevent the state from being exploited while giving the companies an attractive return for their investment*17. Forestry management is seen to be important and, hopefully, schemes will be instituted to encourage and enable the planting of trees for firewood and, especially the planting of trees on land subject to erosion. For the schemes to be successful: Nurseries need to be encouraged to provide saplings for planting (a business

opportunity), Loans need to be available with sufficient duration for financing the planting,

husbanding, harvesting of the trees and sale of the wood, Stiff penalties imposed for the illegal harvesting of trees. Charcoal manufacture is often seen as wasteful*18, but it is a fuel which is

transportable and less bulky than dried wood and so is ideal for transporting to areas which lack forestry resources

Again these are investment opportunities for private entrepreneurs. *17 The return-on-capital approach is attractive because it prevents a government from

being seen to be exploited by a private company earning an extraordinary higher return on his investment. However, the downside is that a company can earn more money by simply over-investing. The mark-up approach encourages the investor to be as efficient as possible and, in that way, increase the proportion of the mark-up that is profit. Unfortunately, the latter approach does not encourage continuous investment and so the quality of the output needs to be defined with care and monitored. Nevertheless, it has generally been found that the mark-up approach works better than the return-on-capital approach.

*18 If the heat generated in the manufacture of charcoal can be used for, say, the drying of

harvested crops, then the manufacture of charcoal can meet two needs efficiently.

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The 10th FYP seems to recognise the need for improve access for farmers to credit and finance, but does not explicitly explain how this is to be achieved.

The introduction of an insurance scheme to protect farmers from the vagaries of Nature would seem an excellent way forward and would reduce the risk of lending to the sector. However, the cost of the insurance needs to be included in the loan mark-ups or interest charged and the charge has to be sufficient to provide for a series of bad harvests. Moreover, care is needed to determining exactly when the insurance should pay out and to what extent. The careful monitoring of the risk is needed in order to ensure that the insurer (most probably, but not necessarily only Government) is setting appropriate premia according to the actual risk.

It has generally been found that making groups responsible for the loans to the members of the groups has been more effective in achieving good performance than other approaches. The group can be an extended family, a village or cooperative or even a group growing similar crops and needing loans for similar purposes.

The continued lending to the group is dependent upon the prompt repayment of loans. Often, the repayment of instalments is made a public affair (almost a party) which would shame any defaulter. Usually, members of the group who wish to continue borrowing pressurise would-be defaulters to repay, or possibly contribute to the repayment or help the would-be defaulter in his work to earn sufficient to repay the loan. It has often been found that women’s group are more conscientious about repaying than men’s groups. There seems to be the tendency to lend short-term and recover all monies owed at the time the harvest is sold. This “short-term” attitude by banks mitigates against the consolidation of holdings and the introduction of new techniques which may require several years to be realised. Part of the reason for this is the fear of default. A key to a low default rate is the constant monitoring of the activities of those who have borrowed and early intervention when problems start to emerge. Bank officers cannot always carry out as closer monitoring as is needed. In which case, there is a role for Government extension officers to work closely with bank staff and, in any case, the intervention is often best carried out by extension officers. Finally, the 10th FYP recognises that Syria is losing employment potentials by exporting agricultural produce with a minimum of value added. For instance, in 2006: Syria exported US$ 268 million worth of live animals (HS01), mainly sheep and

goats. This compares with only US$ 369,000 worth of meat and edible meat offal (HS 02). Almost all of these live animals are exported for immediate slaughter in the importing country (mainly Saudi Arabia). Those going to Saudi Arabia are mainly for religious purposes; but not all and those going to other countries are simply for food*19. Not only would Syria gain the value-added by

*19 In the past, there was a taste difference between fresh and frozen meat, but better and

quicker transport has allowed meat to be transported chilled which preserves better the taste of meat.

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slaughtering and processing the meat in-country, there would be a wide range of other raw materials produced, such as fat for lard and animal oils, waste meat for protein feeds, blood and bone for meal for fertilisers, hides for leather manufacture.

Syria exports US$ 196 million worth of cereals (HS 10), mainly wheat and

meslin, yet only exports US$ 7.6 million of wheat and meslin flour. The export of the wheat and meslin would undoubtedly be milled into flour almost immediately it reaches the importing country. Milling the wheat exported within Syria prior to export would add value and employment.

Syria exports US$ 198 million worth of olive oil and its fractions (HS1509).

However, the exports are to Italy, Spain and the Lebanon (in total US$ 130 million) with the remaining US$ 68 million to other countries, such as Saudi Arabia and the USA. However, Italy, Spain and the Lebanon are countries which are also major producers of olive oil. Hence, it is likely that Syria oil is either blended with other oils or marketed as produce of the Mediterranean; that is without recognition that the oil is from Syria. It means that Syria oil is priced only as a bulk-oil or as a mixture of regional oils. The loss of value-added would be considerable and puts Syria in a position of being dependent upon others for the successful marketing of its oils.

Just under 50% of cotton (HS 52) is exported from Syria unprocessed, not

carded or combed; with a value of US$ 185 million. A further US$ 125 million was exported as yarn and a further US$ 53 million was exported as fabric. This compares with US$ 850 million worth of articles of apparel (HS 61 and 62) exported in 2006 (part of these exports are made with artificial fibres*20). It would be quite practical to imagine the exports of apparel increasing by 30% to 50% if the exports of cotton and yarn were diverted to local apparel manufacture.

The development of livestock, particularly in the Badia, has led to desertification which has been exacerbated by the cutting down of perennial shrubs for firewood and the planting of fodder crops in soil not fertile enough to bear the crops. Perhaps a focus on maximising value-added and raising fewer animals, rather than the drive for expansion would have been a more appropriate way for development. The marketing, storing and processing of wheat remains largely in the hands of the State. The General Establishment for Cereal Producing and Trade handles the marketing of wheat, barley, lentils and chickpeas, while the General Company for Mills and the General Company for Baking handles milling and baking respectively. The General Company for Silos, Feed Mills & Seed Plants handles most wheat storage. Private wheat milling has been allowed since the early 1990s and about two-thirds of Syrian bread comes from private bakeries. The Government, to a large extent, determines prices throughout the supply chain from harvesting wheat to the manufacture of bread; a factor that could result in intentional or unintentional subsidies and cross-subsidisation. The uncertainty of the level of permitted prices and the extent and timings of the subsidies makes it risky for the private sector to invest large amounts of money or become a significant player.

*20 Syria is also a major exporter of synthetic yarn (part of HS 54), worth US$ 4.8 million,

and woven fabrics of synthetic yarn worth US$ 339 million.

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Cotton has an important role in Syria with 98% of the crop grown by small-scale private farmers. The state-run Cotton Marketing Organisation (CMC) is the sole buyer and ginner of seed cotton and exporter of cotton fibre. Syria’s textile sector only uses some 30% of the fibre with the balance being exported. The Government sets the prices for growers to cover the cost of production and allow for a modest profit. While the system protects producers from the vagaries of the World market, it means that the CMC often exports at a loss. But it also means that the private sector is reluctant to invest in case the Government insists that it buys yarn from the CMC at a price reflecting the set purchase price from farmers for cotton, rather than the World market price and forbids the parallel import of yarn. Notwithstanding the need to start undertaking the export marketing of olive oil, Syria is constrained by the inability of the small-scale growers to meet the exacting standards and timetables of European quality oil buyers. An interesting “by-the-way” which illustrates well the problem is that growers tend to use olive oil as a form a savings bank. When they have money, they store oil at home in drums and, then, when they want cash they sell a drum. The practice means that traders cannot be assured of supply on time and the growers do not always react to prices mechanisms; that is a higher price may cause growers to hoard more oil rather than sell because their immediate financial needs are met by selling less. The Government fears that if it does not encourage people to stay on the land, there will be a move to the cities which already cannot cope because of the numbers of new-comers, both by migration from the rural areas and by the natural increase in the population - the high number of births and the increase in longevity of life. However, the 1958 Agrarian Reform Programme divided up major land holdings and distributed the land to agricultural labourers; 50-100 hectares in rain-fed areas and 10-20 hectares in irrigated areas. The land areas were reasonable but traditional inheritance practices has meant that the land was subsequently further divided between all heirs. The average holding is now only about 10 hectares with more than one third having only 2 hectares or less. Whilst the recent surge in World prices for agricultural produce, reflecting food shortages in many parts of the World, if maintained, may give Syria some breathing room to adapt. The rise in prices may enable the Government to cease subsidising prices. The higher prices may well attract entrepreneurs into agro-processing and provide the sorely needed jobs in rural areas. The biggest impediment to investing will be the fear that, if World prices fall, then price fixing will return and the margins of private processors may be at risk of being squeezed for the benefit of farmers. A series of investment potentials have been identified in Chapter 6 below by selecting those sectors where Syrian producers and merchants have been able to increase exports over a period of some years (2001 to 2006) at a faster rate than World trade. In doing so they have shown that there is a consistent demand and that Syria is a competitive place from which to export. 3.3. The Mining & Manufacturing Sector The mining and manufacturing sector contributes 40% to the gross output of the Economy. Table 3 below provides a breakdown of that contribution for 2006. The largest sector is mining and quarrying, which is actually the extraction of crude oil and natural gas. It contributes 39% towards the output of the Sector. In addition, the

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refining of oil is included in the Chemicals and Petroleum subsector and comprises a large amount towards that subsector. Possibly the public component is mainly oil refining and so refining possibly contributes a little less than 35% of the manufacturing sector and 19% to the total industrial sector. Overall, oil is the dominant activity in the Sector comprising something a little less than 58% of the output.

Table 3Gross Output of the Syrian Industrial Sector at Factor Cost in 2006

(at current prices in SP billions) Sector Total Private Public

1 Food, Beverages & Tobacco 126.2 20 78.5 47.7 2 Textiles, Clothing & Leather 90.1 14 68.3 21.9 3 Wood & Furniture 34.8 6 34.5 0.3 4 Paper, Printing & Publishing 10.0 2 8.9 1.1 5 Chemicals & Petroleum 245.0 39 22.4 222.6 6 Non-metallic Minerals 51.8 8 36.2 15.5 7 Basic Metals 10.3 2 6.9 3.4 8 Metal Products & Engineering 60.4 10 51.2 9.2 9 Miscellaneous 1.6 0 1.6 0.0

Total Manufacturing 630.1 100 53 308.5 321.6 10 Mining & Quarrying 459.3 39 2.8 456.5 11 Electricity & Water 95.1 8 95.1

Total for Sector 1,184.5 100 311.3 873.2 Source: Central Bureau of Statistics

The state is a major force in the Sector providing 74% of the output, but this is heavily weighted by crude oil. Of manufacturing, the state provides 51% of the output, but again oil, in terms of oil refining, is still the dominant activity. Without oil refining, the contribution of the state would be between 16% and perhaps 20%. After refining, the next major subsector is food, beverages and tobacco, contributing 20% to the manufacturing sector. Again the state is an important player contributing 38% to the subsector’s output. The next most important sector is textiles, clothing and leather contributing 14% to the manufacturing sector, with the State is contributing 24% to the subsector’s output. In all of the other manufacturing subsectors, the private sector is dominant; though in several, there are important state-owned activities. The Sector employs 725 thousand people, which is 15% of the workforce. However, the sector is especially important because many of the enterprises provide wage earning jobs, rather than work on one’s own account, which implies a certain amount of entrepreneurship and risk. The 10th Five Year Plan (FYP) placed a lot of emphasis on manufacturing, predicting or hoping that the sector would increase by 15% per annum during the five years and accelerating to 19% per annum during the 11th FYP. The plan also called for manufacturing productivity to increase by 10% per annum and employment to rise by 10% per annum. The Sector was also to play an important role in reducing the deficit in the trade of manufactured goods through increased exports. In order to achieve this growth, the plan envisaged far higher levels in inward foreign direct investment. To oversee the development of the Sector, the plan envisaged the

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establishment of an Industrial Development Council. The plan also set out new support institutions; such as, an Industrial Modernisation Centre and an Export Promotion Centre; as well as the establishment of an Industrial Development Fund and Export Processing Zones. Noteworthy is the intention to take the initiative and approach potential investors abroad; Saudi Arabia, Italy and Turkey were mentioned in the Plan. The signing of the Greater Arab Free Trade Area agreement has had a positive benefit for Syria in that Turkish entrepreneurs have been setting up ventures in Syria in order to gain access for the other countries in the Area; particularly Egypt, Jordan and the Arabian countries. The analysis of Syria’s exports, which is the subject of this report’s Chapter 4, and the comparison of Syrian exports with those of Tunisia, Jordan and Turkey would seem to support the optimism shown in the 10th FYP. It would seem from the analysis that Syria does have a competitive advantage to export across a very broad range of products. What is vital is that Government, through its policies and management of the Economy, does not permit this competitive advantage to be lost. The new programmes and initiatives outlined in the 10th Five-Year plan, if implemented, should provide the support mechanisms needed by entrepreneurs to invest and export. Additional comments on some of the proposals in the 10th Five-Year Plan are given in Appendix I. A series of investment potentials have been identified in Chapter 6 below by selecting those sectors where Syrian manufacturers have been able to increase exports over a period of some years (2001 to 2006) at a faster rate than World trade. In doing so they have shown that there is a consistent demand and that Syria is a competitive place from which to export. 3.4. The Energy Sector a. The Oil and Gas Resources The Energy sector is definitely a strategic sector providing about a quarter of the GDP. Revenues from exporting oil and petroleum products account for about 30% of total foreign currencies earned and finance around 40% of the state budget. In addition, the sector satisfies local needs for energy resources, as a raw material and fuel. While oil exports have kept the energy trade balance positive for some 15 years, in the near future, this will change. Oil production was at 378,000 bpd in 2007, but it is expected to drop to 300,000 bpd by 2015. In 2000, production was 540,000 bpd. Development in the energy sector in the coming years will be dominated by the following issues: Extending the life of the oil resource by enhanced exploration and extended use

of advanced technologies like horizontal drilling and assisted extraction by pumping water or gas into the resource;

Substituting oil by gas at least partially for electricity generation, which only requires a change in the burner at power stations; at present 51% of electricity is generated using gas and 49% using oil;

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Increasing the capacity of the refineries and improving their processing technologies and seeking to manufacture value added products;

Increasing the capacities of pipelines and the completion of the international connections.

The 10th Five-Year Plan states that the electricity sector will have to be restructured to accord with the Syrian European Association Agreement and an Electricity Law will be issued which will allow competition and attract investments, as part of the Euro-Med regional market for energy and electricity, by 2015. The 10th Five-Year Plan calls for the increased use of gas to 32 million m3 per day, which will be achieved by bringing the Palmyra field on stream and for the connection of major cities, such as Damascus, Homs, Hama, Lattakia and Aleppo, to the gas grid. It also calls for the increased use of gas for: Heating and cooking in homes Industry The generation of electricity.

The use of gas instead of oil also has the advantage of reducing carbon emissions.

The total budget for the 10th FYP is US$ 14.1 billion. However, this estimate was made with the price of oil at US$ 40 per barrel. The breakdown of the budget was:

Table 4Syria’s 10th Five-Year Plan for the Electricity Sector

Type of Expenditure US$

billion Investments in generation and transport 3.380 Investments in distribution 1.407 Other operating costs 1.000 Cost of fuel (at US$ 40 per barrel of crude oil) 8.315 Total 14.102 Total adjusted for US$ 130 per barrel 32.181

Until homes are connected to the gas grid, the Plan calls for greater availability and use of liquefied petroleum gas LPG). LPG use will also be encouraged in locations where it will not be cost-effective to extend the gas grid.

The plan also calls for the construction of two new refineries with a total capacity of 210,000 barrels per day (and increase in national capacity of 50%), one will be at Deir Ezzor, and the refurbishment of the Homs and Banias refineries.

The oil and gas sector is seen as primarily relieving the balance of payments deficit. To do this gas has to take over the role of oil in the generation of electricity, and as a heating source for homes and industry. This would enable the export of oil to continue in the face of increasing domestic demands for energy.

An important development is seen as the construction of the Arab Gas Pipeline from Iraq to Egypt. It will enable Syria to export gas for many years and will ensure that Syria has access to gas supplies after that.

A key objective is to maintain and develop oil and gas production levels of current and potential fields through the use of new technologies and service contracts with international companies with such skills.

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b. Electricity Generation

The electricity sector in Syria is characterised by a high and continuous growth in the production during the recent years of up to 7.7 % per annum between 1994 and 2004*21 with peak demand increasing over the same period by 8.5% per annum, responding to the increasing domestic demand. The installed capacity was in 2005 about 7.5 GW and included: 11 thermal power stations, fuelled by oil and natural gas (84%), 3 hydroelectric plants (13%), and Gas turbines at the Remalan Fields and the Homs and Banias refineries (3%). The power stations are run by the Public Establishment for Electricity Generation and Transport (PEEGT), while the hydroplants are run by the Public Establishment of AlFurat Dam, and the gas turbines at the Remalan Fields by Syrian Petroleum Company (SPC).

However, technical and commercial losses amount to 28% to 30% of the electricity generated. Reducing this loss to at least 20%*22 is a goal of the 10th FYP. One of the major challenges is the high peak demand which amounts to about 6.7 GW. Evening out the peaks and troughs calls for the installation of Time-of-Use metres. The breakdown of electricity usage is as follows:

Table 5Usage of Electricity in Syria by Sector in 2004

Sector KWh (billions) % of total Agriculture 1.498 6% Light Industry 7.787 31% Commerce 1.983 8% Government offices, religious buildings, street lighting 1.528 6% Households 11.957 49% Total 24.753 100%

c. Public-Private Partnerships

The 10th Five-Year plan (2006-2010) set out the concept for Public-Private Partnerships (PPPs) in the Energy Sector. PPPs work in several different ways. For instance: The private partner could fund the construction of an electricity-generating plant

and lease it back to the Government for a pre-agreed fee over a pre-arranged period of time and the private partner would be responsible for the maintenance as part of the contract.

The private sector could lend the Government the funds to build the power plant.

*21 Electricity production is estimated to be more than 37,000 GWh in 2007, and it is

expected to exceed 40,000 GWh in 2008, 44,000 GWh in 2010 and 70,000 by 2020. *22 The losses in state-of-the-art grids such as in the UK and Germany are between 6%

and 7%.

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Under a Build Operate and Transfer scheme, the private sector would build and operate the power station selling the electricity to the Government or directly to consumers at an agreed price. For such schemes to be attractive, a subsidy element complicates the issues. In order to create a simple investment environment, the Government (as it does in fact wish) has to reduce the subsidies, then it could easily invite the private sector to build power stations and provide electricity to customers either on a Build Operate and Own (BOO) or on a Build Operate and Transfer (BOT) basis.

A way for the Government to become involved in a joint venture with the private sector, without an expenditure commitment would be to provide the energy, most probably natural gas at cost and the mark-up to the international price foregone in return for equity in the project. The equity could be taken immediately in return for the future supply at a discounted price or taken progressively year-by-year in return for the value of the supply actually given. A way to enable private sector investment immediately, whilst maintaining a subsidy, is to separate the subsidy from the payment by consumers for the electricity. A possible approach to doing this is given in Appendix G: Energy Conservation & Private Sector Involvement in Electricity Generation. d. Renewable Energy Production In the Executive Reform Plan 2008-2010, a proposal has been put forward to introduce a new law that guarantees renewable energy producers access to the grid and creates incentives by providing elevated tariffs. Again, if the subsidy element could be separated in the way suggested in Appendix G then an elevated tariff may not be needed. Though some form of temporary financial assistance to renewable electricity providers could be envisage as an incentive to attract investors. If government were to talk with potential investors and establish a development plan, including ways to get consumers to buy renewable energy kits, it would launch the renewable energy equipment manufacturing industry. There are two alternative and compatible approaches. One is energy conservation materials and the other is energy generation equipment. i. Energy Conservation With energy conservation, the products are thermal lagging to insulate houses and offices, tinted glass to reflect the sun’s rays and sun screens to place above windows. New properties could be far better insulated than present buildings. Possibly, the Government could start to charge the full price of electricity and then give rebates to those who insulate their houses. In a way, the rebate would, at least in part, be the subsidy that the Government would have incurred if the consumer did not insulate his building. In this way, the Government would not be faced with any increased cost and if the project were successful the need for further power stations would be delayed. Although the consumer would now be paying the full, because of the insulation he may not be paying that much more than he did when his electricity was subsidised. Another energy conservation measure could be the use of energy saving fluorescent bulbs. A conventional bulb uses only 10% of the electricity consumed for light and 90% in heat. Energy saving florescent bulbs uses 80% of the electricity consumed for light and only 20% in heat; they also last for about 10,000 hours; five or more times longer than conventional bulbs. Light emitting diodes are already replacing spot lights and use only 1% of the electricity of conventional bulbs and last for 100,000 hours. Again diverting the subsidy from the electricity consumed to reducing the price of the bulbs

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would stimulate local manufacturing and save electricity, thereby delaying the need for additional generating capacity. The Executive Reform Plan uses the interesting word “Negawatt” to describe energy conservation as opposed to “Megawatt” for energy consumption*23. ii. Renewable Energy Generation The energy generation equipment is solar panels, photovoltaic cells, wind turbines, biomass-to-energy, heat-pumps, and mini-hydroelectric schemes. Solar panels on the roofs of houses and offices could effectively replace electricity water heating. Again Government could offer an incentive to consumers to buy solar water heating solutions by giving the subsidy that it would pay for, say, three years in the electricity consumed heating water in order to stimulate the solar panel manufacturing industry and the take-up of installing solar panels*24. It is estimated that modern solar assisted air conditioning systems save up to 80% of the electricity consumed by conventional compressor based air conditioners. In residential areas, 40% of the electricity consumed is in air conditioning. Again in doing this, the Government would effectively delay by several years the need to invest in additional electricity generating capacity. Biomass-to-energy would be an investment in generating electricity by using commercial and household garbage and effluence to generate electricity. Biomass estimates for Syria were made in 1999 and indicated that, annually, there are available around 577,000 tonnes of dry animal dung, 360,000 tonnes of dry chicken droppings, 230,000 tonnes of human waste and 34,000 tonnes of dry kitchen residues. Such an amount of biomass could generate somewhere around 100 Gigawatt hours. This would reduce the cost of land-fill sites, reduce the risk of contaminating water supplies and provide a new supply of electricity. Existing landfill sites produce methane gas which could be captured and used to generate electricity. Again, Government could calculate the cost-saving of operating land-fill sites and the cost of decontaminating water supplies and give the cost saving to the company investing in the industry.

*23 In Germany, energy saving bulbs reduced energy consumption in 2006 by 15 million

megawatt hours. *24 Tunisia set up the PROSOL programme to increase the use of solar water heating. In

the programme, there are: the end-user (client), the manufacturer of the solar equipment, a local bank and the electricity utility. The only partner in contact with the client is the manufacturer. They conclude a contract about the system’s delivery and installation, according to the PROSOL conditions, including an attractive financing scheme. After the installation, the client gets an addendum to his monthly electricity bill relating to the repayment for the system, including interest of 7%. The electricity utility transfers the monthly payments (including the interest) from the client to the bank involved, which has paid the manufacturer for the cost of the system and installation. By this procedure, the loan, which was forwarded to the manufacturer, is repaid by the end-user. In order to promote the scheme, the interest rate in the first year could be reduced to 0%; and in the second year to 3% by co-financing from an aid donor. The payback period is about 5 years. Essentially, there is a quality certification of the solar collectors to enable a 5-year guarantee to be given. The size of collector is about 2.5 m2 with a 150 litre storage tank and provides about 80% of hot water needs. In Tunisia, in the first year, 30,000 m2 of solar collectors were installed, produced by local manufacturers. The aim for a 5-year period is 200,000 m2. The experience from Tunisia shows that a US$ 1 incentive can generate US$ 5-6 in loan volume.

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Overall, the Government would gain an additional advantage in delaying the need for additional electricity generating capacity. Heat pumps utilise the heat from the soil which is collected by water pipes laid below the surface of the earth. The heat pump uses the warmth collected by water to elevate the temperature to around 30° to 45° C. About 75% of the energy is from the soil and 25% by electricity needed to operate the heat pump. These can be quite large schemes and can be utilised for heating or cooling offices or houses large gardens. Mini hydroelectric schemes and photovoltaic (PV) cells would be relevant for rural locations where the cost of erecting high voltage electric transmission pylons would be very expensive. Some twenty years ago, according to the ERP paper on energy a survey identified 30 to 40 promising locations for mini-hydroelectricity locations, each capable of generating up to 10 MW in western Syria. There are some 1,000 villages and many isolated houses in Syria without electricity supply. PV cells are suitable for powering lighting and running radios and televisions and could be solution for such villages and houses. Mini hydro schemes could supply several villages and/or industrial plants. Again, Government could provide an incentive to investors based on the money it would save by not having to connect the village or house to the grid. Wind power: a pre-feasibility study was recently carried out. The following regions were assessed as the most promising: West of Homs, Lattakia mountain chain, and within the triangle Damascus, Qunaitra and Sweida. Four other sites were considered to be very promising; namely, Sindianeh, Qatina, Ghabagheb and Al Hijana. Under certain conditions, Edlib and Al Sukhna (when the planed 66 kV line and the substation are operational) would be interesting. A wind park at Sindianeh is already under preparation; land has been acquired by the Homs electricity company and the cells to connect the wind park to the new substation in Al Saweri are already reserved. Further sites with even higher wind potential are expected at a distance of some 3-5 km west-northwest from the Sindianeh 1 mast. 3.5. The Building & Construction Sector The building and construction sector in Syria employed some 650 thousand persons or about 13% of those in formal employment in 2006. However, as a contribution to the gross output of the nation, the value of the sector was SP 123 billion or 4% of gross output. The difference in the contributions is due in part to the lower average wage cost of construction workers compared to workers in other sectors and their respective value added. Although buildings may be expensive, it is the cost of the materials and land used in construction where the value lies; rather than in the value added – the wages and skills of the labour. The 10th Five-Year Plan has a series of objectives: i. Enable and encourage the establishment of specialised contracting companies. ii. Improve the efficiency, flexibility and effectiveness of the publicly-owned

construction enterprises so that they can operate on a sound economic basis. iii. Identify ways to increase the productivity of the enterprises by using their

human and material resources more optimally and adopting latest technologies

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in order to increase efficiency and thereby improve their competitiveness and ability to seek business abroad.

iv. Develop the professions which are associated with the building and construction sector, such as architects, building engineers, town planners, and raise their social value, gain recognition for their services and increase job opportunities in these professions by strengthening these professions organizationally and practically.

In Syria, private construction companies, as opposed to state-owned enterprises, are taking a larger and larger role, particularly in developing the infrastructure and in tourism. The reason for this is that many of the infrastructure projects are funded by international donor agencies, which insist on open tenders. However, sometimes, the donor agencies specify the lead contractor has to be from their country or a member country and, in turn, those lead contractors tend to turn to privately-owned Syrian companies, rather than to the publicly-owned ones as sub-contractors. In tourism, the developments are largely funded by the private sector, either Syrian or foreign, which also tend to select private contractors to construct the project. There is a practical downside to the publicly-owned companies in that they have little autonomy, which makes them less flexible in their approach and less able to adopt new techniques and slow to acquire new, more efficient and reliable machinery to carry out their work. This means that they are ill-equipped to be bounded by performance guarantees. In the past, the State-owned companies could more easily fund their activities through the state-owned banks than their privately-owned competitors. However, the new private banks, which have set up in recent years, are both more willing and able to finance the private contractors and to provide bid bonds and performance bonds. So, if anything, the private contractors are now in a more competitive position than the state-owned contractors. Nevertheless, the state-owned contractors are generally larger than the private ones and so are able to take on large projects with relative ease. Although Government projects are open to both public and private contractors, size tends to favour the state-owned contractors. Some of the state-owned contractors also tender for contracts abroad, but this may prove to be increasingly difficult as the number of government-to-government deals diminish and private contractors become larger in size. However, one should not “write-off” the state-owned companies; the Government is contemplating to give the existing management greater autonomy and possibly to retain private management for corporate assets. Also, there is a wealth of technical know-how in some of the state companies which, if it is possible to be retained, could give a niche status to some of the companies. The problem is that the expertise is likely to be lost when those with the know-how leave for better paid jobs in the private sector. For a successful state-owned sector to be retained, the Government will have to give greater freedom in the determination of wage levels. The main sources of demand will still come from the Government or international donor agencies in the future. Government priorities are in water treatment plants, irrigation and dam projects, road building, and housing. Regarding the latter, the rapid rise in the population, the need to upgrade and renew the country’s housing stock and to cater for the inevitable migration from the

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countryside to the towns, means that low-cost housing, especially orientated to the young, often starting both married life and their careers will be a priority. Tourism is the other major opportunity for the construction sector. Apart from the basic infrastructure of road and utility supplies, demand will come from the private sector. A major project is being undertaken in the old town of Damascus along Straight Street. It was a sorely needed project, but its implementation is indicative of all that is wrong with state-initiated projects or where the contract was not so carefully drawn up. The work is messy and slow and must be financially crippling for the traders in the Street as the tourists avoid the area, rather than be affronted by the smell of open sewers and the dust created by the excavations and the need to walk on ribbons of pavement with fairly deep drops to the dug-up street below and to traverse rickety planks of wood to get into many of the shops. A better managed project would have required the work to be done in sections and, as work is completed, the streets swept and rubbish removed. What seems incomprehensible to both traders and tourists alike is that those managing the project must see the awful position that both traders and tourists are in and yet do nothing to mitigate the problem. It does not bode well for the refurbishment of other historic areas of Damascus and other towns.

There are other major infrastructure projects including the upgrading of airports and roads to cater from the increases in tourism. There are private sector projects from large projects along the Mediterranean coast, including hotels and chalet developments orientated more towards Arab families than European tourists. In the old town of Damascus, private developers have restored a number of old houses with extreme care and reference to their historic heritage. Some have been kept as houses, which are rented to guests, and others have been turned into boutique hotels; both orientated to giving guests the atmosphere of life in old Damascus.

Although there are many small-scale developments emerging, especially close to tourist sites. For instance, close to Craq de Chevalier, one can see a number guest houses and luxury houses in a state of partial completion. Their state certainly detracts from the ambiance of the location and perhaps should not have been permitted unless the funds were available to ensure their completion.

However, there seems to be no effective planning related to developments, neither in their location nor in their design. In one way, it is good that private investment is proceeding; in another, it can ruin the ambience of the place. Developments out of keeping or out of scale with the historic monument nearby can destroy the attraction that caused the new development in the first place. Particular care has to be taken with new structures which are statements made by the owners which relate more to their view of themselves than the history of the location where they are built.

3.6. The Wholesale & Retail Trade Sector

The Wholesale and Retail Trade, which includes hotels and restaurants, provided SP 417 billion to the Gross Output of Syrian Economy in 2006; that is 14% of the total. Overall, it is the third largest sector after Mining & Manufacturing and Agriculture, Fishing & Forestry.

The sector employed 759 thousand persons in 2006 (16% of the total numbers employed) of which 96% were male.

The Tourism component of this Sector has been discussed separately, under Heading 3.7.

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There seems to be a complete lack of study relating to the wholesale and retail trade sector, except for Tourism. However, there is talk of Syria developing the service sector without much investigation about the existing state of the service sector.

In Europe, the wholesale and retail sector has undergone a total change over the last ten to twenty years. There were indications that the change was coming for many years before that, but the change when it came took many people by surprise. Wholesale and retail margins are high. Often wholesalers mark-up the products they buy for resale by 25% and retailers mark-up by 33.3%. These are very large margins compared with manufacturers’ margin, which is more typically 20% over and above his costs. The reason for the different mark-ups is volume. The manufacturer typically produces high volumes; the wholesaler handles lower volumes; and the retailer still lower; yet each sector face costs and needs to earn a living.

However, the mark-ups given above are very crude approximations, but in the USA and Europe, entrepreneurs have looked at the mark-ups as a potential to invest and develop the sector by introducing much higher volumes and maintaining or possibly only sacrificing part of the mark-ups.

At the same time, the expansion of cities have pushed the inhabitants further and further out from the centres, but the motor car has given people the freedom to move and not to be tied to the location where they live. The city centres have become places to work, but not to live and the shops have there have suffered as a consequence.

Many city planners miscalculated what was happening; the city centres were allowed to become “run-down”, hastening the departure of residents, while the rents were set ever higher.

The situation created demand for the out-of-town shopping mall closer to where people actually lived and created the opportunity for the hypermarket. At first, these developments were mainly national in ownership and location; but now the largest and most successful have become transnational conglomerates.

The names of some of the transnational enterprises are well-known; such as Wal-Mart (USA), Tesco (UK) and Carrefour (France) and Metro and Aldi (Germany). Tesco has successfully set up throughout Eastern Europe; while Carrefour has set up in China; and Metro has set up in Russia. Wal-Mart, which was possibly the first hypermarket was set up in only 1962 and did not get a stock market listing until 1972. It is now the largest corporation in the World in terms of revenue.

Less well known are the real estate companies that actually set up and run out-of-town shopping malls, such as McArthurGlen which specialises in designer outlet shopping. Although it is American, it now has out-of-town malls throughout Europe. The shopping mall is also a frequent sight throughout Arabia.

This trend is starting in Syria. Around Damascus, there are the Cham City Centre, the Queen’s Centre, Town Centre, Ski Land, Asok Khir and Waha. All of these centres are Syrian-owned, but there may be finance provided from associates abroad. Their effect will be to take turnover away from shops located in city centres. New chains of shops will set up in the new Centres and independent shops in the old centres of the city will probably close down.

At the moment, these shopping centres are new and customers come for the “experience” of being in the centres. It is more a social thing; it is a meeting place. The shops have not seen the need to discount because the competition is not so acute between the malls and the social aspect of the malls is drawing in the customers.

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Also these centres are really real estate operations; the true hypermarkets, like Tesco, have not yet set up in Syria. However, supermarkets, such as Grand Mart, are very much like Tesco was some ten to twenty years ago. It will be interesting to see whether the owners have the aspirations to develop their business into the Tesco of Syria.

There is another trend in play; through the mass media and especially television and the internet, consumer goods brands are becomes global. This effect is just as strong in Syria as elsewhere. However, not every shop can sell brands. The image of a brand is usually carefully created and guarded against poor presentation which may affect the image. Any retailer, if he is to be permitted to sell a major international brand, has to either set up special shops or set aside areas within his shops which adhere to the many design requirements which will maintain the image.

This means that retailing will become more and more closed to the new entrepreneur with enthusiasm but lacking capital.

The reaction in Europe and America has been for small retailers to band together and start their own wholesaling operations; Spar is probably the best know. It was actually founded in 1932 in Holland and now has some 16,000 independent shop-owners in 32 countries as members. The name Spar comes from a Dutch saying “by united cooperation all will profit”.

By cooperating in this way, Spar is able to obtain discounts for its members and enable them to stock a far wider range of goods than would ever be possible operating independently. This is by permitting them to buy small quantities of a large range of products and to provide frequent and regular deliveries.

Also Spar provides advice about merchandising (the design of shop interiors and the presentation of goods) and about managing retail operations (accounting and business planning). It also carries out advertising, provided goods for special promotions which are backed up by advertising, and has developed a range of “own brand” products.

There is a distinct difference between a “Spar” and a normal wholesaler. A wholesaler is in business for his own benefit, while Spar is in business solely for the benefit of its members. The Spar wholesale operation prices its goods only to break-even, after ensuring that its operations are up-to-date and properly financed. Any profit goes back to its retail members as dividends.

The increased margin available for the members of Spar means that they a better able to compete against hypermarkets and can exist with lower turnovers. However, through Spar, a retailer can buy a far greater range of goods than from a traditional wholesaler. Traditional wholesalers generally specialise; for instance, the fresh vegetable wholesaler generally will not also stock toothpaste or ladies underwear. However, Spar has very large buying operations and can deliver to member shops a wide variety of goods in a single van.

The real advantage of Spar may be in rural areas where, through the Spar operation, retailers in rural areas can stock small quantities of a wide variety of goods, benefiting from frequent and regular planned deliveries. Gaining the wholesale deliveries at lower cost, enable them to survive on lower turnovers. There is a political decision to be made: whether to invite Spar and other such organisations into Syria or to set up a “Syrian Spar”. There is probably room for more than one Spar-type operation in Syria. However, Spar and similar such operations have an expertise and a buying capability which is transnational. If small-scale

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retailers are going to survive the onslaught of the hypermarket, they will need all the help they can muster.

There is another political decision to be made and that is what to do with town centres throughout Syria. In Damascus, Al Hamidyeh is probably safe for the time being, though what will happen there is that the shops will become ever more dependent upon tourist, while the tourist will want to experience a true Arab souk. Losing the Syrian customers will make the souk sterile and will lose part of the reason for its attractiveness to tourists.

But the real problem is the shopping areas just outside of the souk in town centres. Already these areas are run-down, often dirty with poor street lighting. The tourist will not venture there and, increasingly, Syrians will go to the malls to shop. This will be exacerbated as people and businesses start to move out of the centre and closer to where the rest of the population has moved. Even some ministries have moved out from the centres; for example the Ministry of Foreign Affairs in now in Mezzeh. The challenge is to redevelop the town centres before all the businesses have moved out.

3.7. The Tourism Sector

Syria has, at least potentially, many of the attributes which would mark the country out as a favoured destination for tourists from both of its key markets; that of Europe (and also North America and the more affluent parts of Asia) and Arabia and much of the Middle East.

The attributes are: dependably warm weather for much of the year, a seaside, and a wealth of historic and cultural sites to visit. For visitors from Arabia and other Islamic countries, the way of life of Syrians means that a visit may not challenge their cultural norms to the extent that visits to Europe may. The troubles which have affected the region may also mean that other Arabs may feel more comfortable in another Arab country.

At the moment, Syrians are demonstrably welcoming and tolerant to tourists, but Syria has not the numbers visiting at the moment which may challenge that welcome and tolerance. The numbers of Arab guest in Syria has increased markedly over the period 2002 to 2006, see Table 6, below. However, the guests have mainly come from Jordan, Iraq and the Lebanon. The reason why Jordanians have come in increasing numbers is unclear; but the increase in Iraqi and Lebanese is partly explained by the troubles in their own countries. The guests from Arabia and other “Arab” countries, such as Egypt and North Africa, have actually declined slightly between 2005 and 2006. The numbers of expatriate Syrians have remained fairly constant over the period.

Table 6 Syrian Tourism: Arab Guests by Nationality (000)

2002 2003 2004 2005 2006

1 Jordanian 118.6 136.6 184.9 245.6 330.62 Iraqi 45.0 66.5 195.4 257.4 345.83 Lebanese 124.8 119.4 161.3 85.8 286.74 Arabian 87.9 90.0 134.4 151.1 130.15 Others 106.6 95.8 139.1 155.1 98.76 Syrian Expatriate 34.9 35.8 51.9 49.0 50.5

All Arab 482.8 508.2 815.1 894.9 1,192.0Source: Central Bureau of Statistics

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Figure 3

Table 7 and Figure 4 provide data on other foreign guests. The sudden decline in European tourists between 2005 and 2006 probably relates to events in the Lebanon and are likely to recover. The decline in tourists from Iran in 2003 and 2004 probably reflects the troubles in Iraq and simply the difficulty for Iranians to travel to Syria. In previous years, there was a specific arrangement between Syria and Iran which encouraged tourism and that probably accounts for the high levels of tourists in 2002. Interestingly, the problems in the Lebanon which affected European tourists did not seem to affect tourists from the USA which are included in “Other”.

Table 7 Syrian Tourism: Other Foreign Guests by Nationality (000)

2002 2003 2004 2005 2006

1 European 89.4 108.8 198.8 249.8 122.52 Turkish 7.1 21.6 36.5 38.7 83.73 Iranian 233.0 102.1 83.7 122.2 157.54 Other 114.1 80.2 97.8 104.1 148.2

443.7 312.8 416.8 514.7 512.0Source: Central Bureau of Statistics

There is a delicate balancing act between mass tourism and the discrete tourist. The masses tend to go on holiday for relaxation, (the beaches and sun) and not so much to be challenged by a different culture. In fact, sometimes, many of these types of tourist prefer to be cocooned with their own. The discrete traveller is more likely to be seeking the excitement of meeting a different culture, to discover the real history behind what they have read, as well as to relax.

The further away the tourist comes from, the more likely they are to be individuals and at least part of small groups with guides. The tourist from Europe will be of either type. The tourist from Arabia will be more like the discrete tourist, but will more often than not be less adventurous.

If one wishes to understand what to avoid with mass tourism, then one need look no further than to the experiences of Spain, Italy, the Czech Republic and even, to a lesser extent, Morocco and Tunisia. The main beneficiary from the money spent on the

Syrian Tourism: Trend in Arab Guests by Nationality

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

1 2 3 4 5

Years (2002 - 2006)

Nu

mb

ers

(000

)

Jordanian IraqiLebanese ArabianOthers Syrian Expatriate

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holiday goes to the airline company, the travel agent, and the hotel. If the hotel is foreign-owned then very little remains within the holiday destination.

Figure 4 Mass tourism also has drawbacks; the guests often want food similar to their own which means imports. It also means high water usage and high demands on sewage disposal systems. Mass tourism does mean job opportunities for large numbers of waiters, cleaners and other more lowly-paid employees. But in terms of numbers of tourists compared with numbers of local employees, the discrete tourist generally provides far more employment and brings far less negative impacts with him. Even with discrete tourists, the amount of foreign currency which remains in the destination country is not always that large. Again, the main beneficiaries are the airlines, travel agents and hotels. As the numbers of discrete tourists are not as many as with the mass tourism, the numbers of full-time job opportunities may be less, but because this sort of tourist tends to visit historic and cultural sights, rather than lying on a beach or by a pool, the tourist pound is spread far more widely. There are more opportunities for drivers, tour guides and restaurateurs in a more widely spread out area. Tourists from the Middle East tend not to go to the same places as tourists from Europe. There is a tendency to prefer chalets where the family can stay as a single unit. However, they tend to wish to be looked after and so the numbers of people serving their needs can be high. The ideal tourist is one who plans his own itinerary and undertakes his own bookings directly within the country. Although they are not so many in numbers, hotels tend to like them because they do not have to give away part of their margin to travel agents. However, often these tourists are more adventurous seeking out a “cultural experience” and are willing to stay in “boutique” hotels and guest houses and explore the more remote parts of a country. General advertising tends to address the mass tourist; but it is a blunt instrument to approach the discrete tourist. Better is to invite (and pay for) travel writers to visit the country and give them the experience that is possible for the discrete tourist – the boutique hotels, the local customised tour arranger, and visits to lesser known but

Syrian Tourism: Trend in Other Foreign Guests by Nationality

0.0

50.0

100.0

150.0

200.0

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300.0

1 2 3 4 5

Years (2002 - 2006)

Nu

mb

ers

(00

0)

EuropeanTurkish IranianOther

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culturally important sites. Then these travel writers will write up their experience in week-end magazines in their home country which are more likely read by the discrete tourist. Normally, the travel writer will mention the contact addresses and numbers of the places they stayed and the guides who took them to the sights. More often than not, the discrete tourist will contact the places and persons mentioned directly. In determining the tourism strategy of a country, care must be taken not to be influenced by developers who tend to go for the mass tourist market. Although it is possible to attract all sorts of tourism at the same time, the presence of mass tourists can and does put off the discrete tourist. Spain is a large country, the mass tourist is restricted along only parts of the Mediterranean coast, but it has proven not so easy to lure the discrete tourist to the country and into the interior – the negative image of what goes on along the Mediterranean coast affects every other location. Something which bodes well for Syria is the fact that it is close to Europe, yet is relatively “undiscovered”. The discrete tourist is looking for new places to visit and the options are becoming more limited. The difficulty is that Spain, Italy, the Czech Republic and others also wish to move up-market and go for the discrete tourists, and developers are seeking out new locations. Syria would seem an ideal location to them, the decision of which way to develop Syria’s tourist potential rests with the Government. The Government, as described in the 10th Five Year Plan sees itself as a facilitator rather than an implementer. The role of investing in tourism is definitely placed in the hands of the private sector. The plan sees the Ministry of Tourism as a one-stop-shop for investors. Also for improving the tourism product, the Government sees itself in a supportive role; for instance vis-à-vis the two private-owned and managed hotel schools; though it will look into the practicality of setting up a tourism training fund. The Government sees the present tourism product as basically “sight-seeing” tourism. To this product, it believes, needs to be added a strong beach holiday product complemented by eco-tourism, medical tourism, conference tourism, and adventure tourism. To these ends, it is looking to Tunisia and Egypt for examples of how best to proceed. Possibly another type of tourism could be added: “education tourism”. Education tourism is school groups visiting historic sites to learn about Roman history, Arab history, or the crusades, or to set religious stories in their geographic context. There is also the adult tourist seeking education. They are very different from the “sight-seeing” tourist who wants a little history thrown in with relaxing holiday. The tourist seeking education will want to be immersed in the local culture and to really understand the history of the sights visited. Table 8 and Figure 5 provide an interesting insight about visitors to Syria. Most Arab visitors stay in paid-for lodgings rather than hotels. Syrian expatriates also stay in paid-for lodgings, but mainly as non-paying guests with friends and family. European and other visitors (manly America, Australasia and East Asia) mainly stay in hotels. Many Turks stay as non-paying guests. The Iranians stay in medium quality hotels and paid-for lodgings. The table and figure give some indication of the orientation for any future accommodation that should be constructed in developing the tourism sector. One would need to learn more about why people visit Syria. Nevertheless, there would seem to be much scope in attracting more Arab guests by constructing lodgings rather than hotels. For Europeans, there is a surprising spread of accommodation booked. It is sometimes risky to build luxury (that is expensive) hotel accommodation in new out-

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of-the-way locations, such as where historic sites may be located. However, it seems that European and other non-Arab guests are willing to stay in lower quality accommodation. It is probable that many of the Iranian visitors are coming to visit religious sites rather than other historic sites or beach holidays. Many of the Iraqi and Lebanese are simply looking for a change and a rest from the testing times that they face in their own countries.

Table 8 Nights (000) Spent in Syria by Foreigners & Expatriate Syrians in 2006

Jord

an

ian

Ira

qi

Leb

an

es

e

Ara

bia

n

Oth

er

Ara

b

Eu

rop

ean

Tu

rkis

h

Ira

nia

n

Oth

er

Sy

ria

n

Ex

pa

tria

tes

To

tal

1 Five Star 242 137 209 360 88 267 29 14 194 86 1,627

2 De-Luxe 262 199 203 201 78 206 28 11 240 34 1,463

3 1st Quality 205 391 99 165 24 143 18 280 108 33 1,468

4 2nd Quality 305 992 182 247 71 167 92 472 266 81 2,875

5 3rd Quality 600 276 141 96 383 117 60 47 250 105 2,075

6 Hostel 40 76 27 26 20 34 4 22 20 3 271

7 Paid for Lodging 1,322 13,559 3,199 5,668 10,928 376 528 238 517 1,720 38,054

8 Non-paying Guest 2,571 2,905 3,301 938 974 154 1,699 67 94 25,285 37,989

Total 5,547 18,536 7,360 7,702 12,566 1,463 2,459 1,151 1,691 27,348 85,822

Figure 5

3.8. The Transport & Communications Sector The Transport & Communications Sector generated a gross output of SP 275 billion in 2006 or 9% of total gross output. Whilst, the 10th Five-Year Plan estimated that road transport provided 91% of the Sector’s contribution to the Gross Domestic Product, while air transport provided 4%, sea transport 3% and rail transport 2%. The Sector, which includes Storage, employed 354 thousand persons which were 7% of all those in employment. The overwhelming number 98% were males. a. Transport The 10th FYP stated the following:

Nights (000) Spent in Syria by Foreigners & Expatriate Syrians in 2006

1

2

3

4

5

6

7

8

9

10

JordanianIraqiLebaneseArabianOther Arab

EuropeanTurkish

Other Visitors

Iranian

Syrian Expatriates

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Road Transport: The numbers of cars per head of population is still low compared to other

countries at a similar stage in their development and this is in part due to the high import tariffs.

There was the proposal to move from high import tariffs to higher fuel duties and road usage charging to generate money for the development and maintenance of the road network.

Urban Transport:

The state-owned urban transport companies in the four cities (Damascus,

Aleppo, Homs and Latakia) suffer from old buses, breakdown, and a lack of spare parts.

The demand has been met by privately-owned micro-buses. There is a need to enable (assist) the private bus owners to increase the size of

their buses which would help to move more people and reduce congestion. There is a proposal to undertake a feasibility study for the construction of a 9.5

km mono-rail line in Damascus. There is also a proposal to provide 600 new buses for the four state-owned

urban transport companies.

Rail Transport: Syria possesses one of the densest rail networks in the region; however, it is

also one of the least used. Syria ranks behind Egypt and Iraq in terms of goods transported and last behind Saudi Arabia for the numbers of passengers.

The distances between the main towns are such that rail transport should be economic.

However, the network suffers from having two different gauges and often single lines and inadequate signalling. Even so, usage seems to be increasing in recent years.

Sea transport:

It seems that Syria’s ports are operating at about 100% of capacity and are in

need of investment.

Air Transport: Damascus airport is operating at about 80% capacity. However, there is

surplus capacity in the regional airports. The 10th FYP foresaw the Government as a regulator and provider of a conducive business environment for the private sector to take a greater role in the development of the means of transport The 10th Five-Year Plan (Chapter 10: Transport,) listed a total of 203 projects, as illustrated in Table 9

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Table 9Budgeted Projects in the Syrian 10th Five-Year Plan (SP millions)

Number of Projects

New Replacement &

renewal Rolled-over Total

Est. Cost

10th FYP

Est. Cost

10th FYP

Est. Cost10th FYP

Est. Cost 10th FYP

Maritime (54) 22,100 15,8

10 1,031 1,03

1 11,050 9,444 34,181 26,285

Railways (21) 23,226 133 124,05

6 12,9

52 100,131 44,848 247,413 57,932

Road transp. (69) 86,118 8,15

6 15,000 14,1

72 51,549 26,622 152,667 48,950

Aviation (28) 1,285 140 12,729 12,6

69 38,987 30,843 53,002 43,651

Urban transp (20) 1,800 1,80

0 371 365 1,920 1,920 4,091 4,085

Other (11) 0 0 23 23 3,358 1,577 3,381 1,600

Total (203) 134,53

0 26,0

38 153,21

1 41,2

12 206,995 115,253 494,735 182,503

% Allocated 19.4 26.9 55.7 36.9 However, the Executive Reform Plan (2008-2010) considered that it would be difficult to implement the 10th FYP programme and noted that 42% of the projects were rolled-over from earlier plans because they had not been implemented. This reflected a lack of capability in implementing projects and that needed to be addressed before proposing new projects. Moreover, only 37% of the projects were to be funded through the 10th FYP budget allocation. A major share, in excess of 60% was expected to be attracted from extra-budgetary sources (Syrian, Arab and other foreign investors, IFIs, etc.). However, unless, there were detailed feasibility studies with well-designed PPP proposals and clear ways that the private sector would be able to earn a profit from the investments, many of the projects would not be taken up by the private sector. Moreover, there would need to be the legislation necessary to safeguard private sector involvement in PPPs – basically a conducive business environment. The main objective for the Government, as outlined in the Executive Reform Plan 2008-2010, was to focus on the potential for Syria to become the major “Gateway to the Middle East”. In order to achieve this, the Government’s role was to support and synchronise all the activities related to the development of a key transit artery, linking the Western seaboard with the hinterland of Syria and with its Eastern neighbours. The implementation of this strategy would be, in part the modernisation of the ports of Tartous and Lattakia and the removal of the serious constraints facing the rail and road facilities eastwards. The means of implementing the objective was proposed to be still through Public-Private Partnerships (PPPs) but the Government would put forward “carefully selected” projects in maritime, rail, aviation, road communications and urban transport and the PPPs would be adjusted to the circumstances and may be: service (licensing) contracts, management contracts, leasing, concessions arrangements*25, the outright sale of assets, and joint ventures.

*25 The concession arrangements were described as either: build, operate and transfer

schemes (BOT), or build ,operate and own (BOO) schemes and build, operate, own and transfer-in-part schemes (BOOT).

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The Executive Reform Plan’s primary focus was first on strengthening the capabilities within the Ministry and state transport enterprises to streamline operations, raise efficiency and to identify and prepare projects which could be implemented as Public-Private Partnerships. Some BOT projects were foreseen as being capable of early implementation, such as: The development of the port at Tartous by means of 2 new berths and

associated terminals for dry cargo handling with access for vessels up to a draft of 15 m; and

The development at Lattakia port of a dedicated and privatised container terminal.

Also in order to develop the West-East corridor concept, a BOT project was proposed for maintenance of the railway line from the ports. As part of the building up of capabilities, it was proposed to design one PPP pilot scheme for Urban Traffic Management in one selected city which would include paid parking areas, traffic control schemes, and a rapid transit bus network. b. Communications Telecommunications The 10th Five Year Plan stated that the telecommunications sector has grown at nearly 21% pa over the period 1993 to 2003 while National production has grown at only just under 4.5%. The contribution of the Sector to the Gross Domestic Product had grown from less than 1% in 1992 to nearly 4.2% in 2003. Moreover, the growth was expected to continue for some time yet, both horizontally with the construction of new networks and the connection of new subscribers as well as vertically with the development of new value-added services, such as the internet. In 2001, there was no real private sector involvement in the Sector; yet by 2003, it accounted for just less than 54% of the sector by turnover. The reason for the rapid rise was the introduction of the cell phone service. In Syria, the state-owned Syrian Telecommunications Establishment (STE) holds exclusive right to provide communications services, according to its mandate Decree#1935 of 1975. However, in 2000, two private sector companies, Syriatel and Areeba (now called MTN) were each given a 15-year Build, Operate and Transfer contract to set up and operate the cell phone networks. It is estimated that these two providers have invested US 1 billion up to 2006 to provide the cell phone service. The contracts gave the Government the right to introduce a third provider after 7 years. One of the probable impacts of the cell phone and internet has been that international calls accounted for 50% of STE’s income in 2000, but it fell to 38% in 2003 and is still declining. Worker productivity within STE was in 2003 about one employee for every 120 telephone lines. The international average is about one employee for every 330 lines.

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In all, STE employed about 23,000 staff. The number of telephone per 100 persons in Syria is nearly 14; whereas the density for developing countries is 9 per 100 persons and for Arab countries it is 8 per person.

The cell phone BOT contractors employed slightly less than 2,000 persons in 2003 with more than 1.2 million subscribers, yielding a productivity of 1 employee for every 700 subscribers. By 2006, it was estimated that the number of subscribers was 2.8 million.

The proportion of employees with a bachelors’ degree in STE was 15%, while in the BOT contractors it was 50%.

Part of the reason for the discrepancy in productivity rates is that STE is trying to provide a nationwide service and there is a cost in providing the service to small numbers of people in rural locations. However, the cell phone networks are mainly in areas of high population and ease of access (along roads). Also the BOT contractors can call on STE to assist in the more remote locations.

Most cell phone call time (70%) is sold by pre-paid minute which is twice as expensive as the regular cell phone minute and more than ten times the telephone local call rate. Despite the impact of the cell phone, the number of telephone subscribers has not fallen and neither has the number of calls; though the number of international calls has declined.

IT and the Internet

Compared with telecommunications, information technology (IT) has grown far slower. The introduction of computers to businesses has been slow; most SMEs still do not use computers for their accounts or inventory records and often not even for word processing. Moreover, a lot of government administration is not supported by computers.

The Syrian Computer Society (SCS) started to provide internet access to the World Wide Web in 2001. By 2003, it was estimated that there were 110,000 internet accounts in Syria. However, because of multiple usages, the number of users was estimated at 700,000.

Trial use of the data transfer and internet network project was started in 2004 and full operations started the following year. The project constitutes 50 centres and communications services to around 200,000 subscribers, with an eventual capacity of 800,000 subscribers.

SCS has tried to introduce new value-added services, such as automatic translation of text, but they have not been successful.

There are about 130 companies affiliated to the SCS which would represent the major IT companies in Syria. Mainly they market imported hard- and software. Only about 25% of these companies possess their own software development teams. The number of companies specialised in software development and IT services is only about 25. Of these, only two actually export their development services.

Postal services

The General Establishment of Post had a turnover of SP440 million in 2003. This is after a period of slow growth, then decline and then a couple of years of rapid growth. The establishment now, more or less, breaks even. However, to put this turnover into context, the revenue of the internet services to SCS is SP 800 million and growing rapidly.

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Part of the reason for low turnover is competition from the informal private sector in money transfers and parcel delivery. Also the GEP has established many post offices in rural locations which are not cost effective, but do provide a social service.

The GEP delivers parcels to the recipient’s address, which often is costly. The informal sector usually delivers only to a central depot and the recipient has to collect it. Perhaps, in order to recapture the market, the GEP has to modify its services or offer alternative services.

Remote Sensing

The General Organisation of Remote Sensing (GORS). GORS is specialised in conducting research and studies using the applications of space and remote sensing techniques, as well as other assisting technologies. In what ways, this organisation may be able to develop income earning activities is unclear. To date, it is organisation in search of a role.

Some possible developments could be in the search of mineral resources and water or even of archaeological sites.

The Future

One of the major challenges facing STE and the other more traditional communications services is the need to retain qualified staff. The Higher Institute for Sciences and Technology has been qualifying IT specialists since 1983. In addition, there are IT faculties in four Syrian universities with the first students graduating in 2003. However, in 2003, Syrian schools had only 12,300 computers between them. A very small number compared with the number of school children.

But the Gulf countries are a lure for IT graduates and in order to keep the graduates in Syria, it will be necessary to provide them with remunerations sufficient to dissuade them from leaving to work abroad. The cell phone companies may not suffer to the same extent due to their much higher revenues which enables them to pay their staff accordingly.

Moreover, the difficulties faced by Syria vis-à-vis the USA has meant that software companies abroad have been reluctant to form joint ventures or enter into technical agreements with Syria companies.

The labour and technical issues facing Syrian IT firms has meant that those Syrian needing software and IT network installations often have to turn to Egyptian, Lebanese and Jordanian companies for solutions.

To meet these challenges, the Government proposes that during the 10th FYP:

Software incubators are set up by providing software developers suitable premises and support to assist them in developing software solutions needed by enterprises in Syria;

Vocational training centres in IT are established; Software developers in Syria are encouraged to develop Arab language cultural

and entertainment programmes; Technological cities as part of a National Initiative for Technological Zones are

established, but the Plan does not indicate how these are to be achieved or financed, though there is the expectation that once established they will attract investments. The Plan calls for two such technological zones to be established initially.

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Recently, the General Wireless Communication Establishment (GWCE), was established, in order to provide new and enhanced value added services to meet the perceived needs of other sectors with a view to improving performance and increasing effectiveness. However it is still not clear what these new value added services will be.

The Government’s 10th FYP proposes to approach directly major computer manufacturers about the idea of starting the assembly operations in Syria of low-cost computers and association hardware. This would seem an admirable pro-active step.

The Government also recognises the need to restructure and recapitalise STE and provide it with greater autonomy to operate more like a private sector company

Finally, among other developments, the 10th FYP foresees:

Cell phone networks to cover all habited areas of Syria; Access to telephones raised to 22% of the population; Access to internet raised to 12% of the population; The establishment of IT centres in rural areas so that a basic services is

available to all; The establishment of Public-Private Partnerships for new value-added services

for which the STE can provide the means to pay for the services; for instance by the sale of pre-paid cards;

A national initiative for E-government to increase the computerisation of government work.

Again how these developments are going to be achieved is not very clear.

3.9. The Finance & Insurance Sector

In 2006, the Financial and Insurance Sector contributed SP 117 billion to the gross Output of the Economy; that is 4% of the total.

Also in 2006, there were employed nearly 112 thousand persons in finance insurance and property or 2% of those employed in the workforce; of which 90% were males.

The sector has not been studied in depth in this review because it has been studied in depth as part of other projects in recent years.

However, as part of the review of other Economic sectors, it has been noticed that there are still gaps in the Sector’s services. Most noticeably, there is a lack of long-term loans and venture capital (equity finance). These deficiencies have been noted by Government and proposals were put forward in the Executive Reform Plan (2008-2010) for Manufacturing. As part of this review, comments and further proposals have been made on these initiatives in Appendices H & I.

While reviewing in detail agricultural and manufacturing exports, it has been noted that many of the major achievements are causing the companies engaged in the export to require further assistance in marketing their products, particularly in finding new markets and in expanding their production facilities.

Venture capital and long-term loans address the need for finance to expand production capabilities. In addition, a service to provide facilities and equipment on lease is also needed. Similarly, there is the need to have institutions that are willing to buy freehold industrial properties and lease them back to the industrialist and thereby release money tied up in property to invest in machinery; see Appendix I. These financial services will be most important in attracting foreign and expatriate Syrian investors to set up Syria.

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Export credit insurance is also seen as a vital service as it provides insurance cover against the risk of buyers failing to pay. The insurance policies may be used as collateral to raise working capital. As a result, exporters can feel confident about offering credit terms to their foreign buyers, thereby enhancing the overall appeal of their product. Again this is discussed in more detail in Appendix H.

In Syria, there are six specialised state-owned banked, each focusing on specific sectors. The largest is the Commercial Bank, and then there is the Agricultural & Cooperative Bank, the Real Estate Bank, the Industrial Bank, the Savings Bank, and the Popular Credit Bank.

There are also several informal finance houses operating according to Sharia rules. Some of these finance houses are large and have a major impact supporting trade and the purchase of capital equipment; for instance Sahloul. Sahloul is nominally a money broker, but also provides a range of Islamic banking services.

More recently, a number of foreign and locally-owned banks have been permitted to set up in Syria; for instance: Byblos Bank Syria, Bank Audi Syria, Arab Bank Syria, The Bank of Syria and Overseas, The International Bank for Trade & Finance, Banque Bemo Saudi Fransi and Syria Gulf Bank. Six banks operating under Sharia Law have also been approved to set up in Syria and three so far have: Cham Bank, Albaraka Bank Syria, and Syria International Islamic Bank.

There are also other semi-banks such as the Agency for Combating Unemployment which provides funds through the formal banking system to help would-be entrepreneurs to set up their own businesses. There have been discussions about whether the Agency should become a micro-finance bank.

3.10. The Social & Personal Services Sector

In 2006, Social and Personal Services provided SP 87 billion to the Economy (3%) and private non-profit services provided a further billion (1%). Government Services, which includes government-run educational establishments, the public health service, the military, as well as local and central government, contributed SP 222 billion (8%).

In terms of employment, there were 1.3 million people employed in services of which 73% were male. Services were by far the largest employer of women with 57% of the total, compared with 22% of men.

Below are discussed a two subsectors of Social and Personal Services for which information is readily available. a. Education Subsector

Schools

The 10th FYP mentions a Private Education Law, which is to allow the private sector to share the education task with the public education; it also proposed allowing public schools to set up private kindergartens. It also mentions that the quality in private sector schools should be assured and a system for licensing, control and qualifications should be established to set a framework for competitiveness amongst the private and public sectors, taking quality as a basis.

The private sector should be brought into a new “organic relationship” involving educational and associated institutions which would include discussing teaching

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standards, training needs, qualifications, and employment as well as setting education policies and programmes.

The determination of the curricula and the numbers of places in vocational and technical education would be in coordination with the private sector. Moreover, the private sector would be encouraged to participate in investing in vocational and technical education

The 10th FYP mentioned that boarding schools should be established for the education of children of nomads. Equally, there may be a need or an opportunity to establish boarding schools or boarding houses within existing schools for the children of expatriate Syrians who may prefer that their children receive a Syrian education. Also there may be an opportunities to attract parents from other Arab and African countries to send their children to Syrian boarding schools.

Universities The 10th FYP mentions that the state universities need restructuring with a view to giving them more independence. In this way, it is hoped that they can become more orientated to the needs of the private sector both setting their in the curricula and in selling their research capabilities. There would also be opportunities for the universities to market their facilities for conferences and training. In this way, they may be able to earn income to fund their research activities and new developments. There are presently eight private universities operating in Syria, with 12,000 students enrolled; covering less than 5% of the total university students in Syria. However, some dozen or more new private universities are believed to be either under construction or in planning stage. The private universities focus on excellence and are able to afford attracting back to Syria teachers who have been working abroad. The ability to do this comes from focusing on wealthy parents who seek an excellent education for their children, but who possibility cannot afford the cost of education abroad or perhaps are reluctant to send their children abroad. Also there are expatriate Syrians who wish to send their children back to Syria so that they at least gain some experience of living in Syria, having spent their early years abroad with their parents. Providing that the private universities can maintain an image of excellence, they may attract students from abroad, as has been achieved in Jordan. The 10th FYP actually set a target for attracting foreign students to study in Syria, at both private and public universities, as 10% of all students. Moreover, if the private universities continue to grow at their present speed, they will start to make a worthwhile contribution towards providing graduates to meet the anticipated demand from Syria and the Gulf. The 10th FYP mentioned that the Ministry of Higher Education ought to take responsibility to ensure that private universities are subject to at least the same accreditation procedures and quality assurance systems as state universities. The accreditation should be based on internationally accepted criteria. If this is done with a view to enhancing the role of private universities and to give confidence for foreign parents to send their children to Syria for education, then it is worthwhile.

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An interesting project included in the 10th FYP is to establish a network of individual Syrian researchers working abroad with a view to encouraging and enabling them to contribute to promoting and supporting research and development in Syria. b. The Health Subsector The 10th FYP only makes a few passing references to the private health services. However, it does suggest:

A movement toward health insurance

Increased competitiveness amongst health services providers as a means to raise quality and as a result of establishing a National Health Fund

The gradual transformation of public health institutions into independent bodies

Increased decentralisation of decision making

It will be possible to developed contractual systems with service providers after the creation of the National Health Fund

Establishing an independent commission for accreditation and quality management for both the public and private health service

Unification of standards for public and private health services

Increased cooperation between public and private hospitals.

If the plan is to bring the private healthcare providers into the national healthcare system, this may encourage private investment in healthcare. Experience of other countries has been that the costs can often be held down by private healthcare providers which are not constrained so much by staffing policies. Sometimes by offering higher wages, the private healthcare providers can achieve higher productivity levels. However, experience has shown that where the public sector has turned to the private sector to overcome deficiencies in the public sector provision, it has been at a high cost. If a vibrant private healthcare sector can be developed, then there is a possibility that it can become export orientated. This would follow the experience of Jordan and, in the past, the Lebanon where centres of excellent were established to which foreigners were attracted to solve their health problems. An interesting example of such a centre is Piestany in Slovakia which has long attracted people from other parts of Europe and from Arabia who had orthopaedic problems. In the healthcare complex, which is on an island in the middle of a river, there are hospitals, clinics and hotels set in parkland. Still a large percentage of the patients are from Arabia and often they are accompanied by family members who stay in the hotels.

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4. An Analysis of investment Opportunities based on the Trade Statistics

As governments open the borders of their countries to physical trade, all physical production has to meet international standards and prices. This means that it would be without sense to establish a production unit when the maximum sales price possible is such that the unit would not make a profit if the present tariff barriers were to be removed. Hence, all new investment opportunities, if they are truly to be opportunities, must be able to compete with imports over the long-term with a minimal duty imposed and a test to do that would be if they are capable of producing to international standards of price and quality; that is to export. An added problem for those who just focus on the domestic market is that there may never be able to achieve the economies of scale necessary to compete with imports. Consequently, a way to identify those economic sectors, that could be the focus of any promotional activity, would be to look at those sectors where Syrian producers are achieving exports. If Syrian producers are already exporting; this implies that their goods meet export standards and price. The question is whether or not they can increase their exports: If their exports are rising faster than World trade in the respective commodities

then this is an indication that they are competitive and the only limitation is World demand;

If other neighbouring countries are also exporting and perhaps have a World

market share which is larger than Syria’s, then this is another indication that the Syrian exporters may be able to do better;

and it is a matter of further investigation as to the reasons why Syrian exporters are not performing as well as they might. Furthermore, if neighbouring countries are exporting goods that Syria is not making, or making only to a limited extent, then there may be potential for Syria to make those goods. There may be a number of reasons which could curtail export development even though the Syrian manufacturers are competitive with their ex-factory price; for instance: A lack of shipping lines to new markets (the cost and delays in transhipment

can remove the competitive advantage) A lack of appropriate transport to new markets (e.g. a lack of refrigerator

capacity to new markets) A lack of knowledge of the buyers and their requirements in new markets A lack of sources of long-term finance to invest in additional production lines A lack of collateral to support further working capital loans to expand output and

fund expected credit terms Constraints faced by local suppliers of raw materials or packing materials Lack of availability of skilled labour to oversee the production lines and quality

control.

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Most of the constraints listed above actual do apply to Syria to some degree and have been mentioned either by the private sector or the Government at one time or another*26. They all ought to be removable with a little cooperation and determination. Looking at the exports of neighbouring countries provides a method of reviewing what can be achieved. Of course, there may be many reasons why it cannot happen in Syria, it may depend on geographic factors, historical/political relationships, natural resources and the like. But it is still worth identifying those constraints in order to examine whether or not they can be removed*27. Looking further afield than just neighbouring countries introduces many more uncertainties, such as climate, proximity to markets, business climate, the attitude of investors, etc. Therefore, justifying the reason for investing in Syria in a particular process becomes much more difficult if it is successfully made in, say, Costa Rica, than if it is made in Turkey. Similarly, looking at imports of, say, Saudi Arabia, may well show market opportunities, but again it does not imply that Syria can penetrate the market. However, if Jordanian exporters have succeeded in penetrating the Saudi market, then the case against developing that product in Syria becomes far more difficult to justify. Even so, care needs to be taken, Jordan, in particular, has a special trading agreement with the USA which gives Jordanian exporters access to the US market which Syrian exporters do not have. But to most EU and Arab markets Jordanian exporters and Syrian exporters compete on an even “playing field”. Not all neighbours will be relevant for such a comparative analysis. It is felt that Lebanon has a lot of troubles presently which will affect their trade, similarly for Palestine, while Israel is too specific a case for a valid comparative analysis. Also Egypt is also different because of the size of its population and low wage costs. Cyprus was considered to be too small, but its tourism potential would probably be a relevant consideration in creating Syria’s tourism potential. Hence, Turkey and Jordan would seem to be relevant for a comparison of export achievements, though with certain provisos, and Tunisia also presents itself as a country which could be seen as a competitor to Syria. However, Tunisia has penetrated different markets to those by Syrian exporters. If Syria is competitive in *26 The difficulties with finance were raised by the Government in the 10th Five Year Plan

and solutions were proposed. Also the constraints with shipping were highlighted in the Plan as well as the need for better support for the private sector in export promotion, and the constraints faced in securing skilled labour.

*27 Slovakia has attracted four major international car manufacturers to set up in the

country – Volkswagen, Citroen Peugeot, Kia and Hyundai. The population of Slovakia is only 5 million. The Czech Republic, which borders Slovakia, has a tradition of car manufacture, which Slovakia does not, and Poland, which also borders Slovakia, has a population 10 times that of Slovakia. Wage rates are comparable in all three countries. Before these investment decisions were taken, it is doubtful whether Slovakia would have been chosen as a car manufacturing centre by economists.

There is a Belgian diamond merchant who cuts his diamonds in North Korea. There are

actually several logical reasons for basing his diamond cutting activities there and most, if not all, of the immediate reservations that one might have, have proven to be unfounded. It shows that one should not always be negative, but, rather, one should look positively.

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World markets then, once it has saturated its traditional markets, following Tunisia’s achievements would be a valid next step. Table B2, which is to be found in the Appendix B, shows a comparison between the exports of Syria and those of Tunisia, Jordan and Turkey. An analysis of exports per person has also been provided in order to take account of the respective sizes of the countries. Table B3 shows the same data only the products have been sorted according to the value of Syrian exports. In both tables, exports in which Syria excel have been highlighted and the exports in which the other three countries excel have also been highlighted. If the exports of either Tunisia, or Jordan, or Turkey of any particular commodity are substantially higher than Syria’s exports, then, even though Syria does well, the Syrian exports have not been highlighted. Tables B1 and B2 are interesting in that they show that the commodities in which Syria is successful in exporting are in the low commodity heading numbers; that is in basic materials and food preparations. In the more highly manufactured goods, Syria is hardly present or at least its presence is more limited than in the other countries. Tunisia’s exports are fairly evenly spread throughout all commodities. So are Jordan’s exports but to a more limited extent. Turkey is heavily involved in most commodities. In Table B2, it may be seen that Syria has only one export commodity worth over US$ 1 billion per annum whereas Tunisia has 4 such commodities and Turkey has 11 such commodities. Jordan, which has less than half the total export value of Syria, has four commodities worth more than US$ 0.4 billion. Hence, the other countries studied are, by and large, exporting a broader range of goods. In general, exporting a wide range of goods should give a country a greater degree of stability and the chance of diversification and adaptation in the face of competition or changing demand. A further investigation shows that where Syria excels is often in those commodities which require little or no processing, such as: 01: Live animals 04: Dairy products 07: Edible vegetables 09: Coffee, tea, mate, spices (mainly spice seeds) 10: Cereals

14: Vegetable plating materials 27: Mineral fuels 41: Raw hides, skins & leather (mainly sheep skins) 52: Cotton 54: Manmade filaments

For all of these products, there would seem to be scope for further processing which would increase value added and provide employment. If there are constraints, it would seem a priority to investigate why the constraints exist and how best they can be removed. Even though Turkey exports large values of cotton, edible vegetables and manmade filaments, on a per capita basis they are half the values of Syrian exports. If there were products which would typically be ascribed to Syria, it would be textile and clothing and leather and leather goods. However, it seems that Syria exports the unprocessed or semi-processed raw materials of these sectors, at least to a greater extent that the other three countries of this analysis, see Table 10 for a breakdown of Syrian exports of Cotton (HS 52).

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Table 10Syrian Exports of (HS52) Cotton in 2006

Exports(US$

million)

As a share ofWorld trade

(%)

Cotton, not carded or combed 184.5 1.7 Cotton yarn (not sewing thread) 85% or more cotton, not retail 124.2 1.3 Woven fabric of cotton, nes 37.6 3.8 Woven fabrics 85% or more cotton, weight over 200 g/m2 10.3 0.1 Other cotton articles 16.1 Total 372.7 0.7

Moreover, while articles of apparel and footwear are important sectors, Syria’s impact on World trade compared with either Tunisia or Turkey is small. For instance, with reference to Table 11:

Table 11Syrian Exports of selected textiles, apparel and footwear in 2006

Syria Tunisia Turkey US$ per person

50 Silk 39 296 7.6 53 Vegetable textile fibres, not elsewhere specified 7 1,474 210.6 157 22.4 55 Manmade staple fibres 1,227 3,080 2.5 7,018 5.7 56 Wadding, felt, non-woven yarns, etc 179 1,361 7.6 751 4.2 57 Carpets, etc 1,596 9,268 5.8 58 Special woven or tufted fabric, lace, etc 4,893 5,633 1.2 59 Impregnated, coated textile fabric, etc 121 286 2.4 373 3.1 60 Knitted or crocheted fabric 3,330 8,621 2.6 61 Articles of apparel, knitted or crocheted 30,241 101,161 3.3 94,217 3.1 62 Articles of apparel not knitted or crocheted 14,782 248,172 16.8 60,951 4.1 63 Other made up textiles 4,718 20,831 4.4 64 Footwear, etc 8,093 51,091 6.3

Note: Column in gray is the ratio of Tunisian and Turkey exports over Syrian exports The large sectors of the textile and garment sector for Syria are Articles of Apparel HS 61 and 62. However, both Tunisia and Turkey export more than 3 times the value of apparel that Syria exports in HS 61. For HS 62, Tunisia exports nearly 17 times the amount that Syria exports on a per capita basis and Turkey exports nearly over 4 times the amount. It should be remembered that Tunisia has slight less than half the population of Syria and so 17 times amount on a per capital basis related to only 9 times the total value. However Turkey has almost 10 times the population of Syria and so 4 times the amount on the per capita basis represents over 15 times the total value. If either Tunisia or Turkey is exporting to only a small number of countries, then it may imply that they have special contacts which may not be available to Syrian exporters. That is, if a major garment distributor in Europe is manufacturing in either Tunisia or Turkey and that is the reason for the high export volumes, then Syria may not be able to capture any of that market. However, Syrian factory owners could approach other major buyers with a view to establishing their own contacts. Hence, regardless how one may look at the export figures, it seems that both Tunisia and Turkey are exporting considerable amounts more than Syria, once Mineral fuels are discounted (part of HS 27).

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But a note of caution, it is generally perceived that China and other Far Eastern countries are capturing an increasing share of the World market for apparel. Table B2 looks at how competitive a country is within World trade and compares Syria with Tunisia, Jordan and Turkey. The last four columns are calculated by subtracting the growth rate over the last few years of World trade from the growth rate of the respective country’s exports for the respective commodities. A positive figure means that the country’s exports are competing with the exports of other nations and increasing their penetration of the World market. If the rows of figures in the last four columns in Table B2 were all negative, then it means that the region is no longer competitive in the respective product, but if the figures of only one or possible two of the countries were negative then it implies a problem within that country, rather than the region. Obviously, if all the figures in a row were positive then that product would seem to be a very good product in which the region could focus. It may be immediately noticed that for most commodities, Turkey has negative figures. Of the countries being analysed, it is the most diversified, but it seems that diversification is not helping it. That does not necessarily mean that it exports are declining, but it does mean that the country has lost its competitiveness. What also is immediately noticeable is that of the 54 sectors for which it has been possible to calculate the figure for Syria only 3 are negative. This compares dramatically with Turkey for which only 14 of the 82 sectors where the figure can be calculated are positive; see Table 12.

Table 12Number of Sectors where the Growth in Share of World Trade

Is positive and negative Syria Jordan Tunisia Turkey

Positive 51 94% 48 75% 58 71% 14 17%Negative 3 6% 16 25% 24 29% 68 63% For both Jordan and Tunisia the proportion of negative recordings (the growth in exports is slower than the growth in World exports) is worse than Syria’s but nowhere near as bad as that for Turkey. The extent of the problem facing Turkey would seem to be far greater than just the impact of competition from China or India. That would be reflected in negative recordings in Syria, Jordan and possibly also Tunisia. Table 12 above shows that the problem lies only with Turkey and one must look to internal problems for the cause. Of course, the internal problem facing Turkish exports may be no more than domestic demand is growing rapidly and producers are orientating their production to the domestic market in preference to exporting. Such effects may be noticeable in products for the construction industry and in raw materials which are no longer being exported directly but directed to local down-stream manufacturers. It may also be noticeable when an industry moves “up-market” and starts going for value-added rather than volume. There are only four sectors where the figures exist for the three countries (Tunisia, Jordan and Turkey) and are all negative; they are:

28 Inorganic chemicals, precious metal compounds, isotopes 30*+ Pharmaceutical products 52 Cotton

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62*+ Articles of apparel, accessories, not knitted or crochet. However, there are more sectors where there are one or two figures which are negative and there are no positive recorded; they are:

25 Salt, sulphur, earth, stone, plaster, lime and cement 26 Ores, slag and ash 31 Fertilisers 35*+ Albuminoids, modified starches, glues, and enzymes 43 Fur-skins and artificial fur, manufactures thereof 45 Cork and articles of cork 46* Manufactures of plaiting material, basketwork, etc 51*+ Wool, animal hair, horsehair yarn and fabric thereof 54*+ Manmade filaments 55*+ Manmade staple fibres 57*+ Carpets and other textile floor coverings 69*+ Ceramic products 80 Tin and articles thereof 86 Railway, tramway locomotives, rolling stock, and equipment 93 Arms and ammunition, parts and accessories, thereof.

However, for several of these sectors (those marked with an asterisk), the figures are positive for Syria, which means that Syrian exports are growing faster than the growth in World exports for the respective sectors; therefore they should not be discarded, but investigated with care in order to be sure that the opportunities for further expansion really exist. The reason for caution is that, for some of the sectors, the exports by Syrian manufacturers are so small that the reason for the seeming competitiveness may be due to special factors other than the performance of the enterprises. For instance, the export may be of second-hand equipment which was not originally manufactured in Syria or the product may be of a completely different specification from most goods traded around the World and were exported for a special reason. Nevertheless, the size of the Syrian exports in those sectors marked with a + may be large enough that the competitiveness is real and so Syria would seem to have a competitive edge in these sectors over their neighbours. Finally, a possible interpretation for what may be happening to Turkey in some sectors is that it is moving towards higher value-added activities and leaving certain high volume, low value-added activities. If this were the case, then Syria could have the opportunity of picking up those lower value-added markets. It may not always be the case that Syria can immediately compete in World markets in the higher value added sectors for the reason that its entrepreneurs lack the technical know-how and have to “cut their teeth” with the simpler, lower value-added products first*28.

*28 Of course, it would be desirable for Syrian entrepreneurs to move immediately into

higher value-added, more technical products, but this requires a strategy for accessing technical know-how through joint ventures, technical agreements, licensing arrangements. For such arrangements to happen, there needs legislation to be in place to protect the owners of know-how and intellectual property and security for the repatriation of income from intellectual property as well as the means to raise finance locally – it is unlikely that the providers of know-how will also provide the capital needed, especially for export-orientated ventures.

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5. A Development Strategy for Syria

So what could the development strategy for Syria look like? There are several different strategies, which could all be undertaken at the same time, depending upon the sector; that is: Move to high value-added activities Increase output in those sectors that Syria would seem to have a competitive

advantage Encourage investment in those sectors in which neighbouring countries would

seem to have a competitive advantage in the expectation that Syria would as well

5.1. Move to high value-added (VA) activities

Table 13Selected Exports of Syria in 2006

Low VA products High VA products US$ 000 US$ 000

01 Live animals 257,964 02 Meat and edible meat offal 369 04 Dairy products 78,857 Higher VA products within the sector

- butter, cheese and yoghurt 45,114

07 Edible vegetables 357,716 Higher VA products within the sector, such pre-packed and 20 Veg., fruit, nut, etc, food preparations

151,082

09 Coffee, tea, mate, spices (mainly spice seeds)

184,456 Higher VA products within the sector; such as, packed for consumer sale

10 Cereals 195,707 11 Milling products, malt, starches, insulin, wheat gluten

13,846

14 Vegetable plating materials

9,945 46 Manufactures of plaiting material, basketwork, etc.

930

27 Mineral fuels 3,666,558 Higher VA products within the sector, such as refined products

739,065

41 Raw hides, skins and leather (mainly sheep skins)

70,253 Higher VA products within sector, 42 Articles of leather, animal gut, harnesses, and travel goods, and 64 Footwear, gaiters & the like, parts

165,742

52 Cotton 372,713 61 & 62 Articles of apparel and accessories, 63 Other textile articles

939,180 54 Manmade filaments 343,196

Total 5,537,365 Total 1,858,763 It would be quite reasonable to suppose that increasing the value on the low-value added products listed in Table 13 would increase the value of exports by at least another US$ 5.5 billion in 2006 prices. From Table 13 above, the following sectors would seem worthwhile focusing upon:

02: Meat and edible meat offal 11: Milling products, malt, starches, insulin, wheat gluten 20: Vegetable, fruit, nut, etc food preparations 42: Articles of leather, animal gut, harnesses and travel goods 46: Manufactures of plaiting material, basketwork, etc.

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61 & 62: Articles of apparel and accessories, 63: Other textile articles 64: Footwear, gaiters and the like and parts

As well as focusing on the higher value added products which are included in the following sectors:

04: Dairy products (for instance, butter and cheese) 07: Edible vegetables (for instance, sorted cleaned and pre-packed vegetables) 09: Coffee, tea, mate, spices (mainly spices – sorted, cleaned and pre-packed) 27: Mineral fuels (for instance, distillates) 41: Raw hides, skins and leather (mainly leather goods)

5.2. Increase output in those sectors that Syria would seem to have a

competitive advantage Looking at Table 14 and Table 15 which tabulate the results of the growth in the share of World exports, the difference between Syria and the three other countries is most marked. For a large proportion of sectors Syria’s exports are growing faster than World trade. This is in marked contrast to the other countries. Both Tunisia and Jordan have a number of sectors where exports are growing faster than World Trade, but Turkey’s sectors are mainly growing slower than World trade.

Table 14Sectors which would increase Value Added in Syria

& were Competitive in World Markets in 2006

Industry Exports (US$000)

Growth of share in World exports ( %pa)

04: Dairy products, eggs, honey, edible animal product nes 123,976 74.0 07: Edible vegetables and certain roots and tubers 387,716 28.0 09: Coffee, tea, mate and spices 184,456 0.0 20: Vegetable, fruit, nut, etc food preparations 151,082 44.0 42: Articles of leather, animal gut, harness, travel

goods 12,931 25.0 46: Manufactures of plaiting material, basketwork, etc. 930 20.0 61: Articles of apparel, accessories, knit or crochet 570,987 42.0 62: Articles of apparel, accessories, not knit or crochet 279,105 50.0 63: Other made-up textile articles, sets, worn clothing

etc 89,088 74.0 64: Footwear, gaiters and the like, parts thereof 152,811 18.0 Total 1,953,082

Therefore the initial analysis would seem to suggest that for some 49 sectors out of 98 Syria would seem to have a competitive advantage. One has to be cautious with sectors where Syria’s exports only a small amount, say less than US$ 10 million per annum because a small absolute increase in sales translate into a large percentage increase. Also these small absolute increases may not be sustainable year on year. However, even if one focused only on those sectors with a turnover of over US$ 10 million this would give 39 sectors upon which to focus.

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Looking back at the sectors identified in the first analysis based on increasing value added 10 of the 14 sectors are also identified by this analysis, which may suggest that some developments to increase value added may actually be starting. The other four sectors may still be worth pursuing, the only reason why they were not identified by this exercise was that it was not possible to calculate the growth of share in World exports for these sectors. However, they can be calculated for Jordan and all four shows good growth (though caution should be shown with HS 27 Mineral Fuels because Jordan is not a producer of oil, though does refine and export to its export processing zone).

Table 15Sectors which would increase Value Added in Syria

& were Competitive for Jordan in World Markets in 2006

Industry Exports (US$000)

Growth of share in World exports ( %pa)

02: Meat and edible meat offal 369 148.0 11: Milling products, malt, starches, insulin, wheat

gluten 13,846 12.0 27: Mineral fuels, oils, distillation products, etc 4,405,623 137.0 41: Raw hides and skins (other than fur-skins) and

leather 70,253 63.0 Total 4,490,091

It is a reasonable assumption that if these sectors are competitive in World markets for Jordan, the same should be true for Syria, especially as Syria possesses the raw materials. However, there are other many commodities, which are listed in Table 16, that would benefit from further investigation because it seems that Syrian enterprises are competitive in World market, or at least since 2002 they have been able to gain an increased share of the World market. There are a further four products, see Table 17, for which Syria is also competitive in World markets or at least has increased its share of the World market, but the commodities are low valued added. For both HS 10 Cereals and HS 52 Cotton, the competitiveness is rather marginal at respectively 4% and 1%. However, the Syrian enterprises which use these commodities as raw materials in their production would seem far more competitive in World markets; for instance, HS 11 Milling Products and HS 61, 62, and 63 Articles of Apparel and Other Made up Textiles with growths of respectively: 12%*29, 42%, 50%, and 74%.

*29 This value is actually that of Jordan because it has not been possible to calculate the

figure for Syria; see Table A3.

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Table 16Syrian Exports which seem competitive in World Markets

in 2006

Industry Exports

(US$000)

Growth of share in world

exports (%p.a.)

56: Wadding, felt, non-wovens, yarns, twine, cordage, etc 3,383 369.0 85: Electrical, electronic equipment 226,630 230.0 38: Miscellaneous chemical products 3,770 164.0 44: Wood and articles of wood, wood charcoal 7,060 146.0 34: Soaps, lubricants, waxes, candles, modelling pastes 271,541 136.0 96: Miscellaneous manufactured articles 18,692 135.0 55: Manmade staple fibres 23,171 133.0 95: Toys, games, sports requisites 6,150 115.0 73: Articles of iron or steel 132,504 110.0 21: Miscellaneous edible preparations 24,393 108.0 76: Aluminium and articles thereof 47,345 105.0 94: Furniture, lighting, signs, prefabricated buildings 60,001 105.0 39: Plastics and articles thereof 222,451 102.0 69: Ceramic products 24,388 102.0 84: Boilers, machinery; nuclear reactors, etc 277,718 84.0 19: Cereal, flour, starch, milk preparations and products 44,226 83.0 72: Iron and steel 32,879 83.0 49: Printed books, newspapers, pictures etc 30,736 82.0 59: Impregnated, coated or laminated textile fabric 2,284 80.0 57: Carpets and other textile floor coverings 32,016 76.0 30: Pharmaceutical products 62,090 75.0 15: Animal, vegetable fats and oils, cleavage products, etc 197,978 72.0 48: Paper & paperboard, articles of pulp, paper and board 53,376 67.0 22: Beverages, spirits and vinegar 65,163 65.0 33: Essential oils, perfumes, cosmetics, toiletries 30,113 62.0 35: Albuminoids, modified starches, glues, enzymes 15,198 51.0 29: Organic chemicals 2,885 49.0 18: Cocoa and cocoa preparations 18,350 48.0 83: Miscellaneous articles of base metal 9,480 44.0 58: Special woven or tufted fabric, lace, tapestry etc 92,378 41.0 17: Sugars and sugar confectionery 37,455 33.0 74: Copper and articles thereof 22,340 31.0 87: Vehicles other than railway, tramway 9,756 31.0 68: Stone, plaster, cement, asbestos, mica, etc articles 20,415 30.0 60: Knitted or crocheted fabric 62,876 24.0 40: Rubber and articles thereof 1,725 10.0 24: Tobacco and manufactured tobacco substitutes 3,783 9.0 Total 2,196,699

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Table 17Low VA Syrian Exports which seem competitive in World Markets

in 2006

Industry Exports

(US$000)

Growth of share in world exports

( % pa)

10: Cereals 195,707 4.0 51: Wool, animal hair, horsehair yarn and fabric thereof 7,131 32.0 52: Cotton 372,713 1.054: Manmade filaments 343,096 58.0 Total 918,647 Hence, increasing valued added should not only increase employment in Syria but make the products more competitive in the World market which would add to security. 5.3. Encourage investment in those sectors in which neighbouring countries

would seem to have a competitive advantage in the expectation that Syria would as well

When designing the approach for this project, it was never envisaged that the exporters from Turkey would be facing a loss in competitiveness. In fact, it is very surprising in that it is across almost every sector and there is hardly one sector where the exports seem to be highly competitive. The lower figures for competitiveness are probably due to the large amounts exported. It is hard to be extremely competitive, that is with a growing World market share, when one is exporting tens and hundreds of millions of dollars worth of good. If one were, then the impact would be that buyers from all over the World would be “beating at the doors” of Turkey’s exporters. For Syria, the highest growth rates usually reflect the lower volumes of exports. It is easy to move from US$ 5 million worth of exports to US$ 10 million by only capturing one or two more buyers. It is much harder to capture an additional US$100 million when one’s exports are already US$100 million. One would start to suspect the competitiveness figures for Turkey as well as those for Syria, if Jordan and Tunisia did not show themselves as fairly competitive. Again, because their exports are more broadly based than Syria’s as well as many sectors having larger values of exports, one would not expect them to have as competitive figures as Syria. Neither Jordan nor Tunisia has the mineral fuel exports of Syria, which greatly boosts Syria total export value. If Tunisia and Jordan were not able to show impressive export competitiveness across a wide selection of sectors, then one would worry more about the negative figures of Turkey. However, it seems that often where Turkey shows a negative competitiveness, either Tunisia or Jordan is showing strong positive figures. Hence, it is reasonable to assume that Turkey has gained significant markets in terms of values, but because of internal reasons is likely to lose those markets. Some of those markets may well be lost to region as exporters from countries further afield take them, but others may well be available to Syria; particularly those sectors where Jordan or Tunisia are showing strong positive competitiveness figures. The reason for this is that usually the exports of Turkey were significantly higher than those of all three

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countries combined and so even if Jordan or Tunisia did capture some of Turkey’s market, if Syria was competitive there would be a share for it.

Table 18

Based on Turkey's Exports & Tunisia's and Jordan's Growth in Share of World Trade

Syria Turkey Syria Tunisia Jordan Turkey

Exports (US$000)Growth of share in world exports

( %p.a.)02 Meat and edible meat offal 369 19,410 148.0 -3.003 Fish, crustaceans, molluscs, aquatic 262 172,823 3.0 19.0 6.006 Live trees, plants, bulbs, roots, cut flowers etc 1,892 29,350 22.0 -10.0 -1.007 Edible vegetables and certain roots and tubers 387,716 643,302 28.0 18.0 1.0 6.008 Edible fruit, nuts, peel of citrus fruit, melons 176,815 2,256,385 1.0 5.0 4.011 Milling products, malt, starches, inulin, wheat 13,846 263,567 12.0 28.012 Oil seed, oleagic fruits, grain, seed, fruit, etc, 10,088 72,848 29.0 -1.0 -1.015 Animal,vegetable fats and oils, cleavage 197,978 354,385 72.0 88.0 8.016 Meat, fish and seafood food preparations nes 499 12,356 40.0 30.0 -25.017 Sugars and sugar confectionery 37,455 116,713 33.0 9.0 -1.0 -22.018 Cocoa and cocoa preparations 18,350 111,618 48.0 41.0 25.0 -10.019 Cereal, flour, starch, milk preparations and 44,226 228,068 83.0 1.0 41.0 -5.020 Vegetable, fruit, nut, etc food preparations 151,082 816,430 44.0 44.0 19.0 -1.021 Miscellaneous edible preparations 24,393 74,313 108.0 -7.0 26.0 -27.024 Tobacco and manufactured tobacco substitutes 3,783 487,926 9.0 7.0 0.029 Organic chemicals 2,885 4,098 49.0 2.0 2.0 -77.033 Essential oils, perfumes, cosmetics, toileteries 30,113 159,445 62.0 10.0 5.0 -2.037 Photographic or cinematographic goods 51 1,322 20.0 21.038 Miscellaneous chemical products 3,770 81,657 164.0 40.0 -13.0 -13.039 Plastics and articles thereof 222,451 1,377,304 102.0 5.0 2.040 Rubber and articles thereof 1,725 211,541 10.0 6.0 2.0 -38.042 Articles of leather, animal gut, harness, travel 12,931 252,065 25.0 1.0 -16.044 Wood and articles of wood, wood charcoal 7,060 176,907 146.0 18.0 -2.048 Paper & paperboard, articles of pulp, paper and 53,376 218,313 67.0 14.0 -18.053 Vegetable textile fibres nes, paper yarn, woven 127 11,036 8.0 12.058 Special woven or tufted fabric, lace, tapestry etc 92,378 396,669 41.0 10.0 -3.059 Impregnated, coated or laminated textile fabric 2,284 26,230 80.0 29.0 -44.060 Knitted or crocheted fabric 62,876 607,034 24.0 3.0 15.0 15.061 Articles of apparel, accessories, knit or crochet 570,987 6,634,219 42.0 -5.0 66.0 -2.066 Umbrellas, walking-sticks, seat-sticks, whips, etc 41 350 22.0 -35.067 Bird skin, feathers, artificial flowers, human hair 11 108 -7.0 53.0 -30.068 Stone, plaster, cement, asbestos, mica, etc 20,415 742,062 30.0 15.0 -8.0 12.070 Glass and glassware 4,303 129,567 25.0 0.0 -38.071 Pearls, precious stones, metals, coins, etc 1,527 1,565,479 36.0 5.0 8.072 Iron and steel 32,879 3,867,401 83.0 9.0 2.0 -12.073 Articles of iron or steel 132,504 1,901,528 110.0 17.0 -10.074 Copper and articles thereof 22,340 173,403 31.0 6.0 22.0 -41.076 Aluminium and articles thereof 47,345 537,502 105.0 11.0 21.0 -8.079 Zinc and articles thereof 159 2,902 14.081 Other base metals, cermets, articles thereof 56 454 199.0 64.0 -46.082 Tools, implements, cutlery, etc of base metal 1,739 22,648 2.0 -15.083 Miscellaneous articles of base metal 9,480 230,269 44.0 37.0 8.084 Boilers, machinery; nuclear reactors, etc 277,718 2,071,276 84.0 13.0 -6.0 -15.085 Electrical, electronic equipment 226,630 2,727,973 230.0 8.0 23.0 -17.087 Vehicles other than railway, tramway 9,756 1,678,973 31.0 7.0 -6.0 -28.088 Aircraft, spacecraft, and parts thereof 1 160,409 92.0 64.0 -2.089 Ships, boats and other floating structures 2,260 180,425 49.0 -28.090 Optical, photo, technical, medical, etc apparatus 755 39,828 13.0 -9.0 -33.092 Musical instruments, parts and accessories 1,542 4,570 -9.0 18.0 5.094 Furniture, lighting, signs, prefabricated buildings 60,001 713,228 105.0 3.0 8.0 6.095 Toys, games, sports requisites 6,150 10,615 115.0 -1.0 29.0 -18.0

Industry

Sectors where Syrian Exports could be increased,

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Hence a reasonable strategy would be to focus on sectors where Turkey has a large export market, yet a negative competitiveness figure and either Jordan or Tunisia have positive competitiveness figures. If both Jordan and Tunisia also have low or negative competitiveness figures, it may indicate that if Syria were to have higher volumes for sale, it also would not be competitive. Still Turkey’s exporters are unlikely to give up markets willingly unless the reason is a burgeoning domestic market. A normal response to a loss in competitiveness is either investment in more efficient machinery or a devaluation of the Turkish lira. A problem facing Turkey is that its currency, though it is not tied, is more linked to the Euro than the US Dollar; certainly over the last few years the Turkish Lira has been rising against the US Dollar. However, its competitors in East and Southeast Asia have been definitely linked to the US Dollar. This could well be the source of Turkey’s loss of competitiveness. However, it would seem that Syria’s currency is more linked to the US Dollar, or possibly to the Saudi Riyal (which in turn is linked to the US Dollar) rather than the Euro. This, in truth, may be the source of Syrian export competitiveness as well as that of Jordan and Tunisia. Of the 98 sectors which have been studied at the 2-digit HS nomenclature, the exports of Turkey are larger than Syria’s in 73 sectors and of these in 51 sectors have the competitiveness of Tunisia and/or Jordan positive and of these in 12 sectors the data also reveals that Turkey is competitive. Moreover, in 31 sectors, the data reveals that Syria is also competitive, see Table 18. In another 9 of the 72 sectors, the competitiveness of Tunisia and Jordan is negative or very small; but the figure for Syria is positive and in one case, that of HS 57 Carpets, the figure for Turkey is also positive.

6. The Identification of Development Opportunities based on Syrian Exports

6.1. Preface The statistics are being used in this report are those prepared by the International Trade Centre which is part of the United Nations and is based in Geneva. The statistics are made available on the World Wide Web. The statistics include estimates and adjustments made by the ITC in order to make all the statistics consistent. Certain calculations are not made by the ITC where their statisticians are unsure of the accuracy of the results. The ITC also classifies those sectors and subsectors where their statisticians are confident about the data as: Star: where the growth rate is high compared to that of World trade and the

growth has been consistent over a number of years Emerging: where the growth rate is high compared to that of World trade but

the growth has only been consistent over a recent years Traditional: where the exports has been existing for a long time, even though

they may be growing or declining or stable Snail: where exports are hardly growing or declining.

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If there is insufficient data, then the ITC does not provide a classification. 6.2. Overview Table B2 provides value data on Syrian exports in 2006 together with the exports of Turkey, Tunisia and Jordan and also shows the growth for each country in their respective exports as a percentage of the growth in World exports*30. There are three distinct groupings provided in this table which lists 73 of the 98 headings. i. Where the figures have been shaded grey, Syria’s exports are growing faster

than World trade and so are exports of at least one of the three other countries. In some rows there is no value for the growth in share of World Trade. However, the row may still be shaded gray if the growth in share is positive for at least one of the three other countries*31. In total, there are 53 such commodity headings

ii. Where there is purple shading, only Syria’s exports are growing faster than World trade*32. In total, there are 9 such commodity headings.

iii. Where there is no shading the value of one or more of the exports of the other three countries is significantly higher than that of Syria with the implication that it may be possible for Syria to increase its exports in these commodities.

In total, there are 11 such commodity headings, excluding HS 99.

The implication of this table is, if the reason behind the selection of these commodity headings is correct, that Syria has a competitive advantage in almost all areas. Usually, such a competitive advantage only comes about when a country’s currency exchange rate is falling compared with the currencies of competitor nations and price inflation is not eroding the competitive advantage. This does, in fact, seem to be the case with Syria. However, this action is not the panacea that it may seem at first sight. If a country’s currency exchange rate is falling, imports become more expensive which, if they are a significant part the people’s daily purchases, would fuel price inflation

*30 A positive figure shows the percentage rise or fall in the Country’s share of world trade

since 2001. A positive number implies that its market share has increased by that percentage; ie., if the Syria’s share of World trade was 1.0% in 2001 and 1.5% in 2006, the increase would be 8.9% per annum and a negative figure shows the rate per annum that the country’s share is declining as a share of World trade.

*31 There may be a number of reasons for no growth being calculated, the main one being

that there were no exports recorded in the base year, thereby making the growth infinity.

*32 The final commodity row, HS 99, commodities not elsewhere specified, has

such a range of items which have been misclassified or poorly described that they cannot be allocated to any other heading that it should be ignored in this exercise. However it may be noted that the value of the heading is very large and the inability to classify the commodities will depress the values and growth rates of other sectors.

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within the country and may have a detrimental effect of the balance of payments with the rest of the World. Higher price inflation has the effect of eroding the competitive advantage gain by a devaluation of the currency over time. The trick would seem to be to enable workers to earn more money in real terms through increased productivity rather than higher wages through decree or industrial action by workers. The way this is normally achieved is through giving the owners of enterprises confidence in the future to be prepared to invest in new machinery or upgrade older machinery in order to increase productivity. Then the means to raise the capital to invest must be provided; such as low-cost long-term loans, leasing, and the ability to raise equity capital. Confidence in the future may well come simply by discussing the strategy with the private sector. Confidence building measures may be achieved through a loan-guarantee scheme or a tax incentive for investors, but the reasons for any possible lack of confidence need to be ascertained to guide government in designing the confidence boosting measures. Notwithstanding what has been said above, it seems that the situation in Syria is more complex than in most other nations. Being an oil and other resources rich nation whilst many of the Syrian people are still in a near-subsistence type of economy (that is do not depend heavily on imports to live), the devaluation of the Syrian Pounds against, mainly, the Euro has given enterprises a competitive advantage to export. To the extent that Syrian products are available as alternatives to imports, it has also given a competitive advantage to local producers to replace imports. The higher import prices are offset by the higher export earnings and locally-made alternatives to imports, giving the populace the ability to continue to buy their needs. Also there are many Syrians working abroad, to the extent that their salaries are increasing in Syrian pound terms, they can remit larger amounts home to enable their families to pay for the increased prices for imports. Moreover, the Government is a major employer (or part employer given that many Syrians have two or three jobs to make “ends meet”), it can, to some extent, control wage inflation, but also be generous as it is a major earner of the enhanced income from oil and other resource-based exports. However, this “golden” situation may only be temporary. High prices for the export commodities of Syria may fall or cease to increase. Oil and gas resources have only around a decade of life. The rapid natural growth in the population will inevitably incur demands for, say, food, water, or energy, which the country cannot meet. Already the Government estimates that, overall, the consumption of water exceeds the replacement level of water resources. This leads to a situation where there is only a temporary window of opportunity for Syria to establish a stable developing Economy, which will survive the loss of oil and gas revenues and be able to meet the aspirations of the populace. In order to do this there are a number of steps to be taken: i. First and most important, but well beyond the scope of this report, is the need to

manage, in an acceptable manner, the natural growth in the population, at least in line with the Country’s ability to feed, to provide sufficient water and to provide sufficient energy whatever level of population is predicted.

ii. Second is the need to maintain the competitive advantage it seems that Syrian-based enterprises have in World markets. For this to be achieved, careful government may need to be called for to reduce price inflation tendencies over

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the long-term. Again, the exact methods may be outside the scope of this report.

iii. Third is the need to create a business environment where entrepreneurs have:

a. The confidence to sink their savings into fixed assets in Syria which will create produce and products capable of competing in World markets.

b. Access to support mechanisms necessary to enable entrepreneurs to:

Raise the finance needed, Acquire the technical know-how, and Compete with exporters of other countries (to have the produce,

products and services which are sufficient to attract buyers). It would seem that already, the numbers of job opportunities in the Economy are less than the numbers of person of working age require. In determining the number of job opportunities, consideration must be given to the need to: Take people out of subsistence agriculture and enable the consolidation of

farming units into sizes which are economic and can produce at prices equal to and below World norms

Enable manufacturing units to be of such sizes and mechanised to the extent that quality is comparable to World norms, and delivery times and quantities producible are equal to what competitors can achieve.

This would seem to imply that before a sustainable level of employment is achieved, some jobs may be lost in order to gain the efficiencies and standards needed to compete in World markets. It may not be proven, but it is reasonable to assume that supplying the home market alone will not provide all the jobs required, not only to meet the demand for jobs at the moment, but the future needs due to the migration from countryside to town, the increased use of mechanisation and more efficient production processes, and due to the natural increase in the population. In a World of diminishing barriers, it is not possible to produce goods which are not of World market standard, even if they are destined only for the domestic market. In a barrier-free World, the domestic market is no different from export markets. No matter what the product may look like, in a barrier-free World, consumers will want choice and so no producer will be able to secure his whole home market. Moreover, if he cannot compete in export markets, he will not be able to compete in his own domestic market. For Syria, if the Nation wants to provide jobs for all, it will have to be an exporting nation. With regards to the domestic market, it will have to accept that it will only ever be able to supply a portion if it also wishes to give itself the freedom to choose. Hence, a reasonable assumption must be that, if Syria is competitive in an export market for any particular product, then this should be a product that could be developed further. If Syria is competitive in more than one export market for any particular product and the volumes are large, then there is added confidence that the conclusion is reasonable and the observation is not distorted by some special factor.

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If Syria is competitive in export markets, then it should be competitive against imports in its home market. However, care should be taken in assuming the reverse. Competitiveness in the home market can be lost as trade barriers come down or consumers become more exposed to choice. 6.3. The Sectors where there are perceived opportunities for growth Below is an investigation of 30 Syrian agricultural and industrial sectors that are already exporting and where it would seem that Syria has a competitive advantage and could increase its exports. Also mentioned in each of the sector reports are a number of subsectors which generate the exports. The reports, which are numbered in Roman numerals, i through to xxx, refer to export data for Syria, Turkey, Jordan and Tunisia. The actual data may be found in: Appendix B – Syrian exports Appendix C – Turkish exports Appendix D – Jordanian exports Appendix E – Tunisian exports In each appendix are the exports identified by HS (Harmonised System) code in the same manner that the reports are identified below. For Syrian exports, there is a table of export data for each of the 30 reports provided below. However, for the other three countries’ exports, tables have been prepared only for their major export commodities. Again they have been arranged in their respective appendices according to HS code. It will be seen in the reports below that, if Syria were to achieve the exports per head of population of either Turkey, or Tunisia or Jordan, depending on which country is successful in the export of the commodity being studied, then Syria’s exports would increase greatly, sometimes, by quantum leaps. Certainly, the amount of exports which would seem to be reasonably achievable in total would replace any loss of export earnings from the anticipated decline in oil export revenues. Because the sectors being mentioned are those from which Syria entrepreneurs are already exporting, it is reasonable to assume that they can achieve, possibly with marketing help and better access to finance, further exports. Although help with technologies will undoubtedly be required, these sectors relate to technologies which at least some Syria enterprises understand and have demonstrated that they are able to meet the technical requirements of buyers from abroad, presumably at a profit. It would seem beholden to Government to ensure that Syrian enterprises and foreign investors in Syria are given the business environment and the support necessary to achieve what seems to be possible from the information contained in the following pages; that is: to export in ever-increasing amounts. i. HS 02: Meat and edible meat offal The exports of meat and edible meat offal by Syria in 2006 were small at only US$ 369,000. This compares with Turkey’s exports of US$ 19.4 million and Jordan’s exports of US$ 11.8 million. What is noteworthy is that Jordan’s growth in share of

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World trade has increased by 148% pa, albeit from a low base, which would indicate that there is a market to be pursued and is obtainable. The problem facing Syria would seem that it has established itself as an exporter of live animals (HS 01). In 2006, it exported US$ 268 million of live animals (all but US$ 1.9 million being sheep and goats). This compared with Jordan of US$ 60 million, whose growth in share of World trade admittedly increased by 42% per annum. Hence, it seems that Jordan has a balance between both industries. The fundamental reason for moving towards the export of meat rather than live animals is one of value added, employment and diversification. If Syria processed the live animals, not only would there be meat for preparation (freezing and chilling) and processing into meat products, but there would be blood and bone for fertilisers and hides for leather. Possessing the raw materials would enable new businesses. Syria exports most of its meat to Iraq, whereas most of the live animals are exported to Saudi Arabia. However, it is probable that most live animals are imported for religious reasons than strictly for the need to maintain its factories. Although the Syrian labour may be more expensive than imported labour in Saudi Arabia, there are cost advantages and perhaps even quality advantages in transporting meat rather than live animals and the residue would have a market. Also for Saudi Arabia there are hidden cost disadvantages in that much of the water consumed is desalinated and so very expensive. Jordan’s main market for meat is also Iraq which is indicative that the Iraqi market could take more Syria produce. As a complete “by-the-way”, Syria exported US$ 611,000 worth of live horses, asses, mules and hinnies (HS 0101). Although this is small in terms of value, the growth in World market share has increased by 116% pa. It seems to be a recent phenomenon because the ITC has classified the subsector as “emerging”. ii. HS 03: Fish, crustaceans, molluscs, aquatic invertebrates, not elsewhere

specified Syria is not a major fishing nation, but it has a coastline on the Mediterranean Sea and exported US$ 262,000 of fish in 2006; half of which were fresh, frozen, cured or smoked fish and a third of which were molluscs. Live fish were also significant. The main export markets were to Turkey, Romania and Jordan. However Tunisia’s exports of fish in 2006 were US$ 171 million, Turkey’s US$ 173 million and even Jordan’s was US$ 1.4 million. To put these exports into perspective against Syria’s; Tunisia’s exports were 654 times as large, Turkey’s exports were 660 times as large and Jordan’s was over 5 times as large. With Turkey and Tunisia, Syria shares the same sea. Jordan has a very small coastline and some of her exports are river fish as opposed to sea fish. However, Syria also has rivers. Tunisia’s exports also include the same sorts of catches as Syria’s, but also includes significant amounts of crustaceans. Most of her exports are to the EU, but 20% is destined for Japan.

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It may be that fish resources are not so plentiful around Syria’s coast, but certainly not all of Turkey’s fish catches are in the Black Sea. Sweet water crustaceans command very high prices in Europe in major hotels and could be a realistic project for the north of Syria where it would be possible to construct ponds along river banks. iii. HS 04: Dairy products, eggs, honey, edible animal product not elsewhere

specified The exports of Syria in 2006 were nearly US$ 124 million. The growth in value is very high at 87% per annum and its share of the World market has increased by 74% pa between 2001 and 2006. The ITC have classified the sector as “emerging” because the growth would have taken place only in recent years. The potential for further growth is good because the sector only has a 0.03% market share in World exports. The present markets are: the Lebanon, Jordan, UAE, Saudi Arabia and Iraq. It is interesting to note that Tunisia and Turkey are not successful exporters in this sector; though Jordan does have exports, which on a per capita basis are larger than Syria’s at US$ 10.6 thousand per person compared with Syria’s US$ 6.5 thousand per person. The largest subsector is concentrated milk and cream with exports of nearly US$ 77 million. Although the details are not given but, as the Sector has a growth in its share of World exports of 74% pa and the respective growth rates in other sectors are lower, it may be assumed that the growth in milk and cream is even faster than that of the sector. Fresh milk is also exported, but the value is small at US$ 1.4 million in 2006. The next largest subsector is cheese and curd with exports of just under US$ 41 million. The ITC classify the sector as “emerging” with a growth in value of 56% pa and a growth in its share of World trade of also 56% pa. Buttermilk and yoghurt has exports of nearly US$ 3.5 million and a growth of 24% per annum, which provides a 7% pa growth in its share of the World market. Although exports of Butter from milk are increasing, it is at a rate slower than that of World trade. Overall the number of products exported in this sector with values of over US$ 100,000 is 15. They are being exported to 11 different markets each with exports of over US$ 100,000. iv. HS 06: Live trees, plants, bulbs, roots, cut flowers, etc The export of cut flowers has been in recent years a booming industry with countries as far away as Kenya growing and delivering cut flowers to the European market. Syria exports were US$ 1.9 million worth of products in 2006, 60% being live plants. However, cut flowers, while being small at the moment, at US$ 218,000, are growing fast and increasing its share of the World market by 78% pa. Turkey’s exports were US$ 29 million in 2006, while Tunisia’s exports were US$ 5.4 million, indicating that there is potential for developing in this sector. Syria would seem to have an opportunity in this market with only a short season when flowers will not bloom. Bulbs, plants and live trees perhaps have narrower windows when they can be exporter because they need to be replanted usually at certain times of the year. However, such plants are normally ordered with considerable notice and, therefore, the farming is not speculative.

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A market opportunity which possibly would be worth exploring is Eastern Europe and Russia. These economies are developing and the produce of this sector is to some extent dependant on affluent consumers. Syria is still a favoured holiday market for Russian tourists; cut flowers could be transported on the same aircraft as delivers and returns the tourists. Obviously, Arabia would similarly be a market. v. HS 07: Edible vegetables and certain roots and tubers Syria is a major exporter of edible vegetables, roots and tubers with an export value of US$ 388 million in 2006. This amounted to 1 % of World trade. 43% of the exports were of tomatoes which accounted for 2.9% of World trade in that vegetable*33. The whole sector is classified as “Emerging” by the ITC because the development of the sector has accelerated in recent years, with the exports of a range of other vegetables growing faster tomatoes. Although the major export is tomatoes, worth a little under US$ 168 million in 2006, a wide range of other vegetables are exported. The next largest exports are of: Frozen vegetables (US$ 55 million) which seems to be enjoying a very fast

growth rate with its share of the World market increasing at 142% pa, and Dried, shelled (peeled) vegetables with US$ 52 million of exports and a growth

in its share of the World market at 44% pa. But there are also a number of other vegetables also being exported in a fresh or chilled state: lettuce, chicory, carrots, turnips, beetroot, potatoes, cabbages, cauliflowers, onions, garlic, leeks, cucumbers and gherkins and other leguminous vegetables. Overall, there are 37 different vegetable subsectors being exported in 2006. It may be noticed that the other higher valued export subsectors have a growth in the share of World trade higher than the overall growth in the share of World trade for the sector. Hence, it may be assumed that the growth in exports of tomatoes is slower than for other vegetables. The main markets are Saudi Arabia, the Lebanon, Iraq and Kuwait. But slightly less than 10% are being exported to Europe. Nevertheless, there were some 31 different countries buying at least US$ 100,000 worth of edible vegetables from Syria in 2006. In fact, this sector seems very promising with the exports growing at 41% per annum and at its share of the World market increasing at 28% pa. This compares with growths in the share of World trade for Turkey of only 6% pa and Tunisia of 18% pa. Jordan exports, on a per capita basis, US$ 37 per year compared to Syria’s US$ 21 per person per year. Although Jordan’s exports are only increasing World market share at 1% pa, it has a significant export base which would indicate that possibly Syria could possibly capture part of Jordan’s market. In recent months, shortages of food around the World, which have been prevalent for many years, are coming to the notice of the World as a whole and are being reflected in rising food prices. This would seem to be a good opportunity for Syria to develop its food agricultural potentials and to capture new export markets. It is noteworthy that the population is increasing rapidly in Syria, developing these sectors now would mean that

*33 Actually, tomatoes and cucumbers are fruits, but by convention or taste are treated as

vegetables.

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Syria always has sufficient food to meet domestic demand as the population increases year-by-year simply by diverting exports to the domestic market. vi. HS 08: Edible fruit, nuts, peel of citrus fruit, melons Syria is a major exporter of edible fruit, nuts, peel of citrus fruit, etc with an export value of US$ 177 million in 2006. However, Turkey’s exports are nearly 13 times larger at US$ 2.3 billion and both Tunisia and Jordan have worthwhile exports. This would indicate that this sector has potential for Syria. Tunisia’s exports are orientated to the EU, while for Turkey’s the Russian Federation is the largest market followed by EU countries and Saudi Arabia. The exports are of fresh apples, pears and quinces worth US$ 87 million and of nuts not elsewhere specified (mainly pistachios and almonds) worth US$ 27 million. Both of these subsectors are growing fast and capturing World market share at, respectively, 42% pa and 18% pa. The ITC classify the exports of fresh apples, etc as an “emerging” subsector while the nuts are classified as a “star”. Fresh or dried citrus fruits and apricots, cherries, peaches, nectarines, plums, sloes and melons are also worthwhile sectors. Overall there are 27 fruit subsectors where Syrian exports are over US$ 100,000. The potential for further growth in the sector is good because it only has 0.03% market share in World exports. The Syria exports in 2006 were to Egypt, Jordan, Saudi Arabia, the UAE and Iraq. However, in total, there were 26 countries where Syrian exports amounted to over US$ 100,000. vii. HS 09: Coffee, tea, mate and spices The ITC have classified Syrian exports of this sector as a “star” with exports worth US$ 184 million. Most of these exports are of the seeds of anise, bedian, fennel, coriander, cumin and others, worth US 178 million. The ITC have classified this subsector as “emerging” indicating the growth has been fairly recent. Ginger, saffron, thyme, bay leaves and curry exports are worth US$ 1.5 million but are declining as a share of World trade. However, exports of pepper, peppers and capsicums, though of small value at US$ 194,000 is increasing its World market share at 50% pa. The ITC have classified this subsector as “emerging” indicating that the growth is fairly recent. The main export markets are the UAE, Saudi Arabia, Egypt, and Morocco and interestingly, Brazil. Syria also exports tea and coffee, but this would probably be the packaging of imported bulk tea and coffee. viii. HS 11: Milling products, malt, starches, inulin, wheat gluten Syria exported nearly US$ 14 million in 2006. Syria’s exports were mainly wheat or meslin flour worth US$ 7.6 million, followed by starches, worth US$ 4.6 million and cereal grouts, meal and pellets, worth US$ 1.1 million.

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Syria is also a major producer and exporter of cereals worth in 2006 US$ 196 million. Almost all of the exports were of wheat and meslin. The exports seem to be a recent phenomenon as it has been classified by the ITC as “emerging”. However, it is noteworthy that Turkey has exports of cereals of only US$ 4.1 million (2% of the export value of Syria), but its exports of milling products is US 264 million (19 times as large as Syria’s). It would seem on the basis of this analysis that Syria is losing an opportunity to increase value added within the country. Syria’s exports of cereals are mainly to Egypt, Jordan, Iraq, Italy, and Tunisia, while its exports of milling products are to Egypt, Jordan, Iraq, Lebanon and Saudi Arabia. Hence, Syria is exporting both cereals and high value added milling products to the same three countries. Possibly the opportunity to move to the higher value added milling product need not be too difficult. ix. HS 15: Animal, vegetable fats & oils, cleavage products, etc Syria exported US$ 198 million in 2006. Most of these exports were of olive oil and its fractions, worth US$ 181 million. The ITC classified these exports as a “star” because, in part, the sector is increasing its share of the World market by 86% pa. However, the exports were mainly to Italy, Spain and the Lebanon; all three being also major producers of olive oil. It is unlikely that there would be any final demand for Syrian olive oil in these countries. The implication of this is that possibly specialists in these countries were marketing Syrian oil. If true, this would not be serious, although the marketing margin would be lost to Syria; at least the name of Syria would be presented to consumers. It would only be a small step for Syrian traders to take over the marketing of Syrian olive oil. However, it is more likely that the Syrian oil is being blended with local olive oils and oils of other countries and being bottled in those countries for re-export, most probably without Syria being mentioned on the label at all. Possibly, Syria oil is being sold without being blended with the logo “of Mediterranean origin” which still would mean that there is no developed market for Syrian oil and possibly a negative image of an oil which is only good for blending with others. There are exports of this sector to Saudi Arabia, and the USA, indicating that it may be possible for develop a market niche for Syria oil in other countries by referring to these exports and satisfied customers. Other products in this sector are Soya-bean oil, safflower oil, sunflower oil and cotton seed oil. Also there are some exports of animal fats and oils; but, as the amount of animal slaughtering is small mainly being orientated to the domestic market, these exports are constrained. If animal slaughtering was to increase and the export was re-orientated from live animals to meat, then the value of animal oils and fats would increase. It is noteworthy that the exports of olive oil by Tunisia is also mainly to Italy, Spain, Portugal and France, all olive growing countries. However, the exports to the USA, although small in value, is 9 times as large as that of Syria, indicating that there is potential for Syria to expand in that market.

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x. HS 20: Vegetable, fruit, nut, etc, food preparations Syria exported US$ 151 million in 2006. The sector is increasing its World market share by some 44% pa. Interestingly, there are some 26 products under this heading which have export values greater than US$ 100,000 and 34 export markets with demand greater than US$ 100,000, indicating that the growth is broadly based. Moreover, the share of the top three export markets comprises only 54% of total exports, which reinforces the notion that the exports are broadly based. The ITC classify the whole sector as “emerging” because the exports growth is fairly recent. The main products are: fruit and nuts preserved in sugar, Jams, fruit jellies and marmalade (which the ITC have classified as a “star”), prepared or preserved vegetables, not frozen, and cucumbers, gherkins and onions preserved in vinegar. Interestingly, the value of prepared and preserved tomatoes is only worth some US$ 7 million, compared with the export of fresh tomatoes of nearly US$ 166 million. Usually, tomatoes which are not of a standard to be exported fresh are peeled or made into purée and canned or put into plastic sachets. Of course, fresh tomatoes which are not of export standard are probably being sold on the domestic market. Yet, one would have imagined that the export of prepared or processed tomatoes would have been far higher, given the value of fresh tomato exports. The main destinations are to Iraq, Kuwait, Egypt, Saudi Arabia and the Lebanon. Although Iraq may be the largest market and is a new destination reflecting the troubles in that country and the difficulties faced by manufacturers there, there is a healthy diversification in markets with significant sales going to Kuwait, Egypt and Saudi Arabia. In order to hold on to the market in Iraq and in the Lebanon, the Syrian exporter needs to establish a niche, say for quality that would cause Iraqi and Lebanese buyers to continue buying even when local production facilities are restored. Exporting preserved fruit and nuts in sugar should not be impossible for Europe. Already Syrian exports constitute 13% of World exports of the subsector. These products are seen by most consumers as typical of the Middle East in the same way as “Turkish Delight” is always associated with the Middle East and Turkey. Even manufacturers in Europe display Middle Eastern imagery on the packaging of “Turkish Delight” to emphasise the origin of its recipe. Any negative imagery of the Middle East certainly does not apply to these products. The way into European markets for all products in this sector is through manufacturing for already established named brands retailers/wholesalers, such as supermarkets. Usually, supermarkets have products with their own brand name sitting on the shelves with other named brand products. The own-brand products are usually priced slightly lower than the named-brand products. Consumers, for their own needs, often buy the supermarket brand products, as they are cheaper, but when giving a gift to somebody else will choose the named-brand product. There are people who perceive a taste difference (and if the named brand manufacturer is not the same as the supermarket brand manufacturer, there may well be a taste difference) and so prefer to buy non-supermarket brand products. The manufacturer, providing that both products are made by him, does not mind that the sales are overwhelmingly the supermarket brand because his named product is sitting there with the image of being slightly better. Possibly because, in the public’s mind, his product is perceived to be better, the manufacturer can sell his named product to other shops. The fact that he is selling to supermarkets under their own-

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brand label would be perceived as an assurance to other retailers that the manufacturer’s products are of quality and, as a producer, he is dependable. Providing that the price of his own-brand product is not priced too low by the supermarket, the other shops would not fear being undercut. xi. HS 21: Miscellaneous edible preparations Syria exported US$ 24 million in 2006 and has been increasing its share of the World market by 108% pa. The ITC have classified the sector as “emerging” because the growth has started fairly recently. However, the top three markets take 78% of the exports which indicates some dependency on those markets. The largest is Iraq, followed by Jordan and the Lebanon; but there are exports also to Saudi Arabia and Kuwait. Interestingly, the growth of Syria’s share in World trade for sauces, mixed condiments and mixed seasonings is growing at a very fast 247% pa; albeit from a very low base. At the moment, Syria penetration of the World market is extremely small at 0.045%, but the way forward is exactly the same as mentioned for HS 20. The ingredients are usually those fresh vegetables which are not of export quality. Giving an alternative market for those less acceptable vegetables would enable exporters to export only the best fresh products and thereby gain a premium price and good reputation, which could reflect positively on the processed products and thereby enhance their exports. xii. HS 25: Salt, sulphur, earth, stone, plaster, lime, and cement Exports of this sector are worth US$ 67 million in 2006 of which US$ 65 million is HS 2510 Calcium and aluminium calcium phosphates, natural and phosphatic chalk. However, Jordan is exporting some US$ 159 million worth of HS 2510. It seems that Syria also has worthwhile deposits of these minerals and could export far more if there were investment in the extraction, preparation, and internal transport of the material. Similarly, Turkey exports some US$ 219 million of marble, travertine, ecaussine, etc. It exports are increasing World market share by some 25% pa, while Tunisia’s exports of the subsector are also increasing World market share by some 25% pa. For both the ITC classify them as “emerging” export products. These growths would indicate that there is demand for the product. Syria also has such resources yet exports only US$ 0.2 million. It also seems that Syria could export far more if there were investment in the extraction, preparation and internal transport of the material. xiii. HS 27: Mineral fuels, oils, distillation products, etc This sector contains by far and away the largest export commodities by value at US$ 4.4 billion. Almost all (83%) is crude petroleum oil. The rest is almost exclusively refined petroleum oils. The next largest sector is HS 52 Cotton with exports of US$ 0.37 billion, another resource-based sector with limited Syrian local value added. This sector accounts for 40 per cent of Syria’s total exports. However, it is predicted that this natural resource will be close to exhaustion within a decade at present extraction rates. Most probably, further resources will be found and extraction technology will increase the yield, but unless something beyond expectations occur the life of the resource will only be extended for a few years beyond the decade. If Syria wishes to maintain its standard of living then, this export value will have to be maintained either by developing new exports or by adding value to the exports of this sector.

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Attracting a refiner to establish in Syria when the resource has only 10 years left may be difficult. However, there is talk of a gas pipeline from Iraq and there could be an oil pipeline. There should be possibilities to link the development of pipelines to the construction of a refinery. There is always the potential to construct a refinery linked to the export of products and as the resource diminishes and as the population and economic development in Syria increases for the refinery to switch from local crude to imported crude and from exporting to supplying the domestic market. A major development in refining would provide a range of products which could be further refined and altered to make a wide range of products from fuels, bitumen, to chemicals, paints and plastics which would replace imports and provide new export opportunities. xiv. HS 30 Pharmaceutical products Syria exported US$ 62 million of products from this sector in 2006. The ITC have classified this sector as a “Star” because the growth in value is some 93% per annum and the increase in the share of World trade is 75% per annum. In all there are 12 product headings where exports are over US$ 100,000. The main export commodity is HS 3004 Medicament mixtures put into dosage with a value of US$ 47 million and accounted for 76% of total exports. The next most important product was HS 3003, Medicament mixtures not put into dosage with a value of US$ 12 million. Much smaller in value was HS 3005 Dressings, packaged for medical use with a value of US$ 2.3 million. There were 21 different countries where Syria exported at least US$ 100,000 of pharmaceutical products. The main countries were Yemen (US$ 18 million), the Sudan (US$ 8 million), the UAE (US$ 7 million), and Iraq and Algeria. The three other countries, the trade data for which have been prepared to compare with Syria show that their products are declining as compared with World Trade. Compared with Syria’s +75, Turkey’s export growth has declined compared with World trade by 40% per annum, Jordan’s by 8% pa, and Tunisia’s by 6% pa. Already on a per capita basis Syria exports more than either Turkey or Tunisia – US$ 3 per person compared to US$ 1 per person for the other two. However, Jordan exports US$ 55 per person, but it is falling behind World trade at 8% pa. Its main markets are: Saudi Arabia, Algeria, the Sudan, the Lebanon, and the UAE. If Syria were to export per person the same value as Jordan does per person, then Syria’s exports would be US$ 1.0 billion per annum; which is an indication of the potential. xv. HS 33: Essential oils, perfumes, cosmetics, toiletries Syria exported US$ 30 million of products from this sector in 2006. The ITC classify the sector as “emerging” as the growth is fairly recent. The growth in World market share is impressive at 62% pa and with 16 products worth more than US$ 100,000 being sold to 20 markets worth more than US$ 100,000.

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The main product heading is HS 3304 Beauty, make-up and skin-care preparations, sunscreens, manicure and pedicure preparations worth US$ 17 million, which the ITC classifies as a “star”, followed by HS 3305 Hair preparations worth US$ 11 million. The spread of export markets seems very broad and evenly balanced with Saudi Arabia taking US$ 6.3 million, Jordan US$ 5.9 million, Libya US$ 3.6 million, Iraq US$ 3.2 million and the Lebanon US$ 2 million. It is noteworthy that the growth in World market share of Tunisia sector, worth US$ 22 million, is at 10% pa, while Jordan’s sector, worth US$ 21 million is growing at 5% pa. Both countries have smaller sectors and slower, though still positive, growth rates. However, although Turkey’s sector is far larger at US$ 159 million it is losing World market share by 2% pa. Possibly Syria’s exporters could look to capturing part of Turkey’s market. xvi. HS 34: Soaps, lubricants, waxes, candles, modelling pastes Syria’s exported US$ 272 million of products from this sector in 2006. It seems to be a fast growing sector with World market share increasing at 136% pa. The ITC classify Syria’s sector as “emerging” which would reflect the fact that the growth has started only in recent years. Most of the exports are for HS 3402 Organic surface-active agents, washing and cleaning preparations (other than soap and preparations for soap use) with US$ 243 million. However, there are also significant exports of HS 3401 Soaps and organic surface-active preparations for soap use worth US$ 21.5 million and HS 3405 Polishes and creams worth US$ 5.5 million. The ITC have classified all three of these subsectors as “emerging”. The exports are mainly to Iraq (US$ 104 million or 38%), but there are significant exports to the Lebanon of US$ 55 million, both countries facing troubles which may account for the exports from Syria. However, there are also significant exports to Senegal (US$ 44 million), Angola (US$ 18 million) and Morocco (US$ 10 million). All told there are exports from this sector to 29 countries worth over US$ 100,000. It would seem that the troubles in Iraq may have been the spur to develop this sector, but it seems to be consolidating and building a stable export base. In the shops in Syria, very nicely packaged soaps and candles may be found which are made in Syria. These products would readily find markets in Arabia and possibly in Europe. It is noteworthy that Syria’s exports of this sector are higher than Turkey’s, Jordan’s and Tunisia’s both on a per capita basis and absolutely. Syria exports US$ 14,000 per person compared with US$ 10,000 per person for Jordan and only US$ 900 for Tunisia and US$ 3,000 for Turkey. This would seem to suggest that the success in Syria reflects the ability of the entrepreneurs involved to develop products at prices that are wanted and seek out new markets, rather than any natural (regional) advantage. xvii. HS 39: Plastics and articles thereof Syria exports US$ 222 million worth of plastics and plastic articles. All told there are some 46 different products exported each worth over US$ 100,000 to 40 different

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markets each worth over US$ 100,000. The growth in World market share is impressive at 102% pa and, accordingly, the ITC have classified the sector as a “star”. The main products exported are: HS 3921 Plates, sheets, film, foil, and strips of plastic worth, not elsewhere

specified, worth US$ 84 million together with HS3920 other plates, sheets, film, foil, tape, strips of plastic, etc, worth US$ 12 million.

HS 3924 Tableware, kitchenware, toiletry articles of plastic worth US$ 40 million, together with plastic packaging goods or closures, stoppers, lids, caps, closures, and plastic containers worth US$ 35 million.

The main countries are Saudi Arabia (US$ 59 million), the Lebanon (US$ 26 million), the UAE (US$ 23 million), Jordan (US$ 20 million) and Iraq (US$ 19 million). Both Jordan and Tunisia are significant exporters with exports worth US$ 112 million each. Tunisia’s main markets are France and Italy which would indicate that it may be possible for Syria to break into European markets, while half of Jordan’s exports, worth US$ 56 million) go to Iraq. Turkey’s exports are increasing World market share at only 2% pa and are orientated to Russia (US$ 145 million), Romania (US$ 119 million), Ukraine (US$ 106 million) and to Germany (US$ 86 million) and the UK (US$ 81 million). It is interesting to note that each country has seemed to carve out its own markets with little overlap. There would seem to be some specialisation in that even though Jordan is a significant exporter it still imports US$ 20 million from Syria while exporting US$ 7 million to Syria. But notwithstanding the large values of exports, Syria penetration of the World market is still miniscule at only 0.1% of World trade. Syria significant growth rate may indicate competitiveness in the sector and possibly the exporters should turn their attention to new markets. xviii. HS 41: Raw hides, and skins (other than fur-skins) and leather Syria exports US$ 70 million worth of this sector; 92% of which is HS 4105 sheep/lamb skin leather and of the sector’s exports 79% is destined to Italy. This indicates a very great dependence upon one product and one market. If Syria would curtail the export of live animals and export higher valued meat instead, it would have a significant amount of sheep/lamb skins to tan and with which it can earn export revenues. Saudi Arabia exports some US$ 43 million of HS 4105; US$21 million to Italy, probably the same customers as for Syria’s leather and US$ 14 million to Pakistan. There would also be other residues from the abattoirs, such as blood and bone which could be manufactured into fertiliser. Although there may be potential pollutants produced, a modern plant should be capable of minimising the detrimental impact. Obviously, a longer term objective should be to add value by using the leather in the manufacture of goods and shoes and, therefore, the increase in the volume of this sector is a half-way stage towards the manufacture and export of higher valued products.

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xix. HS 42: Articles of leather, animal gut, harnesses and travel goods Syria exported US$ 13 million of this sector in 2006 which is not a large amount, given that this is a traditional sector. However, much of the turnover of the sector is exported through domestic sales to tourists and so is not recorded in the trade statistics. Nevertheless, exports are increasing, the ITC classifies the sector as “emerging” and it is increasing World market share at 25% pa. There are some 12 products being exported which are each worth over US$ 100,000 and there are some 19 export destinations. The main product subsector is HS 4202, trunks, suitcases, camera cases, handbags, etc of leather, plastic and textiles, worth US$ 10 million. This is followed by HS 4203, articles of apparel and clothing accessories of leather or composite leather, worth US$ 2.3 million. The main markets are Saudi Arabia which takes a third of the exports worth US$ 4.2 million followed by the Lebanon (US$ 1.2 million), and Libya and Jordan, each buying approximately US$ 1.0 million and then Iraq buying US$ 0.9 million. Both Turkey and Tunisia have secured large export markets for these products with Turkey exporting US$ 252 million (US$ 3.3 thousand per person) and Tunisia exporting US$ 71 million (US$ 7.0 thousand per person). This compares with Syria exports of only US$ 0.8 thousand per person. Tunisia is exporting mainly to France, Italy and Germany, but also to Japan and China. The subsectors which seem to be developing are HS 4203 articles of apparel and clothing accessories and HS 4201 saddlery and harnesses. Turkey is exporting to Germany (US$ 73 million), France (US$ 33 million), Russia (US$ 31 million), the USA (US$ 19 million) and the UK (US$ 18 million) and another 42 countries where exports are over US$ 100,000. The main products are HS 4203 articles of apparel and clothing accessories (US$ 212 million), followed by HS 4202 trunks, suitcases, camera cases, and handbags (US$ 38 million). However, unlike Syria’s exports which are increasing World market share at 25% pa, Tunisia’s exports are increasing World market share at only 1% pa and Turkey’s is losing its share by 16% pa. Hence, it would seem that Syria has a good potential to develop this market and possibly the catalyst for this would be to divert the exports of live animals towards the export of meat and thereby keep the hides within the country. xx. HS 52: Cotton Syria exported US$ 373 million worth of cotton, cotton yarn and cotton fabric in 2006. Just less than 50% of the Sector’s exports, worth US$ 185 million, are HS 5210 unprocessed cotton, not carded or combed. A further US$ 125 million of exports (33%) is various forms of cotton yarn and a further US$ 54 million is various forms of woven fabric. Cotton waste comprises a further US$ 10 million. 29% of the exports of the sector are destined for Egypt, worth US$ 107 million, a further 19% is destined for Turkey, worth US$ 72 million and much of the rest is

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destined to Italy, China and Portugal. All of these countries are major textile and garment producers and compete with Syria’s own enterprises. Turkey exports double the value of Syria, worth US$ 786 million, but then Turkey is a much larger country with nearly four times the population. However, its exports are losing World market share by 7% pa. Similarly, the exports of both Jordan and Tunisia are losing share by 6% and 16% pa. Moreover, these countries export comparatively little unprocessed cotton. For instance, Turkey exports US$ 55 million of HS 5210 cotton not carded or combed; 7% of its total exports of the sector. This compares with 50% for Syria. It would seem illogical that so much of Syria’s output of cotton is sold unprocessed. Potentially the cotton could be made in yarn and the yarn into fabric and the fabric into clothing. The increased in value added would be enormous and the jobs created would be highly significant. Possibly, this situation is realised and efforts are being made to correct the anomaly. The growth in the share of World trade in cotton overall (HS 52) is only 1% pa. However, similar growth data exists for HS 5205 cotton yarn with 85% or more cotton content and for HS 5208 woven cotton fabric with 85% or more cotton content. The yarn (HS 5205) is increasing World market share 11% pa, while the fabric (HS 5208) is increasing its share 84% pa. This would imply that exports of raw cotton (HS 5201) must be losing World market share. The implication is that Syria is moving away from exporting unprocessed cotton and moving toward exporting yarn and especially fabric. However, there are supposedly some difficulties. The purchase of cotton from farmers is carried out mainly by the Government, through the Cotton Marketing Organisation. The price paid seems to be above the World market price. The reason for this is partly because the plots available to farmers have been reducing in size generation by generation due to the increase in the size of the rural population. The size of their plots for many farmers has become such that without the enhanced price, they cannot earn enough to live on the land. The Government decided to enhance the price because it feared a mass exodus from rural areas to the cities. This higher cost, it seems, has to be absorbed by the cotton spinners. However, many of the spinning machines are old and no longer can produce economically to the standards required by weavers. The effect has been that there has been a loss of confidence amongst private spinners and an inability amongst state-owned spinners to invest. Several spinning factories have closed down and this is one of the reasons for the export of unprocessed cotton. This situation may, in the coming years, resolve itself in that the prices of most agricultural commodities in World trade are rising and so the over-pricing by the CMC could, and should, be ended because the World price will be sufficient to keep the farmers on the land. If the rise in World market prices is maintained then there will be opportunities for the spinning companies to invest in new machines. If the Government lacks the resources to invest in its own spinning factories, there may well be the opportunity to privatise them.

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In the 10th Five Year Plan, there was mention in the report for industry the idea of creating an Industrial Development Fund, which this report has commented on. Possibly the spinning and weaving enterprises could be the first customers for participatory equity and long-term loans. xxi. HS 54: Man-made Filaments Syria exported US$ 343 million of man-made filaments in 2006. According to the ITC the sector is “emerging” with an annual increasing in World market share of 58%. The main subsector is HS 5407 woven fabrics of synthetic yarn with exports of US$ 338 million. The destinations of the exports are mainly to Arab countries, but there are exports to 54 different countries with values in excess of US$ 100,000. Even the main destinations are fairly well spread being Algeria, Libya, Sudan, Jordan and Saudi Arabia. Being so competitive against World trade, this would seem a sector which can be developed further. xxii. HS 58: Special woven or tufted fabric, lace, tapestry, etc Syria exported US$ 92 million of special woven or tufted fabrics, etc, in 2006 to some 32 countries which took more than US$ 100,000 each. Within this Sector are a number of products, the main ones being tulles worth US$ 31 million, braids worth US$ 25 million and embroidery worth US$ 11 million. The main countries are buying the products are: Saudi Arabia (US$ 27 million), Libya (US$ 13 million), followed by the Lebanon, Kuwait and Iraq. The sector seems to be growing fast and increasing World market share at some 41% pa. However, within the Sector are products which are increasing World market share extremely fast, such as embroidery (US$ 11 million) at 914% pa and labels and badges (US$ 8.5 million) at 137% pa. The ITC classified embroidery exports from Syria as a “star”. Turkey seems to be a major exporter of this Sector with a value of US$397 million in 2006; however, its exports are losing World market share by 3% pa. However, Tunisia exports are also growing fast and increasing World market share by 10% pa; but the value of its exporters are far less than Syria’s at US$ 13 million. xxiii. HS 61: Articles of apparel and accessories, knitted or crocheted This is the second largest export sector of Syria, worth US$ 571 million in 2006; after mineral fuels. The ITC classify the sector as “emerging”. The increase in World market share is at an impressive 42% pa. It is impressive because the sector is large already. The sector exports products worth more than US$ 100,000 from some 88 difference subsector headings. The main exports are: HS 6108, Women’s slips, panties, pyjamas, etc (US$ 133 million); HS 6104, women’s suits, dresses, skirts, etc (US$ 98 million), and HS 6109, T-shirts, singlets and other vests (US$ 87 million).

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Some subsectors are increasing World market share particularly fast: HS 6108, women’s blouses and skirts at 134% pa; HS 6107, Men’s underpants, pyjama, etc, at 68% pa; and HS 6115, Panty hose, tights, stockings and other hosiery at 60% pa. Syria exports to some 50 countries at least US$ 100,000 to each, though the top three countries, Germany, Turkey and Ukraine, account for 39% of all exports. Other important destinations are: Saudi Arabia and Algeria. Turkey, Tunisia and Jordan are all important exporters in this sector. All three export greater values of exports than Syria and the differences are even greater when looked at on a per capital basis: Turkey exported US$ 94,000 per person, Tunisia US$ 101,000 per person, Jordan US$ 142,000 per person, compared with Syria at US$ 30,000 per person. Turkey exported US$ 6.6 billion in 2006, although its exports are losing World market share at 2% pa. Tunisia exported US$ 1.0 billion, but its loss of share was at 6% pa. Jordan’s exports did increase World market share at 66% pa and exported US$ 842 million; though much of this was due to special trading agreements with the USA and other countries. In order simply to match either Turkey’s or Tunisia’s exports per person, Syria would need to treble its exports and add a further US$ 1.1 billion to exports. xxiv. HS 62: Articles of apparel and accessories, not knitted or crocheted This sector is also important for Syria with exports worth US$ 279 million in 2006; overall it is the sixth largest export sector. The main export is HS 6204, women’s suits, jackets, dresses and skirts with US 129 million; 46% of the whole sector. This is followed by Men’s suits, jackets, trousers, etc with US$ 56 million and babies’ garments and clothing accessories with US$ 33 million. Overall there are exports in some 81 different subsectors with values in excess of US$ 100,000. The ITC classify the sector as “emerging” with an increasing in World market share of 50% pa, implying that the growth is fairly recent. Some subsectors are growing particularly fast; these being: Men’s shirts with exports of US$ 7 million and an increase in share of 134% pa; garments made of felt-like products or laminated textile products with exports of US$ 3.5 million and an increase in World market share of 89% pa. The main market is Saudi Arabia taking US$ 75 million in 2006, followed by Libya (US$ 42 million), Jordan (US$ 21 million) and then Algeria and Egypt. Turkey exported US$ 4.3 billion in 2006 which amounts to US$ 61,000 per person, while Tunisia exports US$ 248,000 per person and Jordan US$ 70,000 per person. Syria exports only US$ 15,000 per person. As this would seem a sector in which Syria is successful, given that its growth in exports is faster than World trade growth, it would seem reasonable to hope that Syria cold match the exports per person of its neighbours. If it matched the exports per person of Turkey then Syrian exports would amount to US$ 1.1 billion. However, it may be noted that the movement in the share of World trade are negative for Turkey, at -3%; Tunisia, -8%; and Jordan, -11%, compared with +50% for Syria. These figures imply that Turkey, Tunisia and Jordan are losing market share, while Syria’s exports are competitive and the country is gaining market share.

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Turkey’s main markets are, Germany, the UK, and Spain; while Tunisia’s main markets are France, Italy and Germany. These are markets which Syria has not penetrated; but, given its competitiveness, it would seem reasonable that it could attempt to pick up export business in these markets which the two countries’ exporters are losing. xxv. HS 63: Other made-up textile articles, sets, worn clothing, etc Syria exported US$ 89 million in 2006 and is increasing its penetration of the World market by 74% pa. The ITC classify the sector as “emerging” implying that the growth is fairly recent. The main products are HS 6302 Bed, table, toilet and kitchen linens with US$ 43 million, followed by HS 6305 Sacks and bags of a kind used for the packing of goods with US$ 20 million; HS 6304 Made–up textile articles used in furnishings with US$ 8 million; HS 6310 Rags, scrap, twine, cordage and rope with US$ 7.7 million; and HS 6301 Blankets and travelling rugs with US$ 6 million. In all there are some 35 products in this Sector with exports of more than US$ 100,000. The main markets are Saudi Arabia (US$ 20 million), Jordan (US$ 10 million), followed by the Lebanon, Libya and Greece. Like so many other sectors, Turkey exports per person are so much higher than Syria’s at US$ 21,831 per person compared to US$ 4,718 per person, implying that as Syria seems to be competitive in World markets it is reasonable to expect that Syria could eventually match Turkey’s exports per head and quadruple its export value. Again Turkey’s market is mainly the EU; Germany, the UK, France and the Netherlands; all new markets for Syria. xxvi. HS 64: Footwear, gaiters and the like, parts thereof Syria exported US$ 153 million in 2006 and is increasing its penetration of the World market by 18% pa. Overall Syria exports products worth over US$ 100,000 in 19 different categories. The main exports are HS 6405, Footwear not elsewhere specified, worth US$ 86 million*34, followed by HS 6402 Footwear with outer sole and uppers of rubber or plastic with US$ 32 million, and HS 6403 Footwear with outer sole of rubber, plastic or leather and uppers of leather with US$ 21.6 million. Two subsectors are growing very fast, albeit from very small values in 2001. These are HS 6406 Parts of footwear (US$ 8 million) with its share of World trade growing at 123% pa and HS 6401 (US$ 3 million) with its share of World trade growing at 215% pa. The main export countries are Saudi Arabia (US$ 34 million), and Libya (21 million), followed by Turkey, the Sudan, and Ukraine. The exports to Turkey, worth in 2006 US$ 17.7 million, have been increasing their penetration of the Turkish market by at 162% pa. The potential to increase exports is good. Tunisia exported US$ 520 million in 2006, but it has not increased its share of the World market since 2001, compared with Syria growth of 18% pa. If Syria exported the same amount per head of population as Tunisia (the respective values are: US$ 8,000 and US$ 51,000) then Syrian exports would be US$ 965 million, an increase of over six fold.

*34 Believed to be thongs

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xxvii. HS 73: Articles of Iron and steel Syria exported US$ 133 million in 2006. The exports have been growing rapidly since 2001 at 131% per annum and Syria share in the World’s market has risen by 110% pa. Within the Sector there are some 32 product headings for which exports exceeded US$ 100,000. The ITC have classified this sector as a “star”. The main subsector was HS 7325 Articles of iron or steel not elsewhere specified*35 with US$ 38 million; followed by HS 7321 Iron & steel stoves, ranges, barbeques and non-electrical domestic appliances with US$ 34 million; HS 7323 Iron & steel tables and household appliances with US$ 29 million; and HS 7308 Structures of iron & steel (rods, angles, and plates with US$ 17 million. The main market was Iraq with US$ 39 million, but significant exports also went to Saudi Arabia (US$ 19 million), Jordan (US$ 18 million), the Lebanon (US$ 17 million) and Libya (US$ 12 million). It is noteworthy that Tunisia is also increasing its share of the World’s export markets and exports US$ 12,000 per person compared with Syria’s US$ 7,000 per person. Turkey exports US$ 27,000 per person, but is share of World exports has decreased by 10% per annum. If Syria were to export the same amount as Turkey per head of population, then Syria’s exports would be US$ 510 million. xxviii. HS 84: Boilers, machinery, etc Syria exported US$ 278 million in 2006; the growth in value was an impressive 98% pa and the increase in Syria’s share of World trade was 84% pa. However, almost all of the value and the growth were achieved by one product HS 8418 Refrigerators and freezers, worth US$ 250 million (90% of the Sector’s value). The growth in its value was 280% per annum and its growth in the share of World trade was 264% pa. If HS 8418’s growth in its share of World trade was so much faster than the overall sector’s, it means that other products were losing market share. Of the five other products that a growth of the share in World exports has been calculated, all show negative values. The ITC have classified three of the products as “Traditional”. To emphasise that this is a one product development, 63% of the exports are to Iraq. It seems that the probable motivation for the project was to supply the Iraqi market. However, there are significant exports also to Jordan (US$ 31 million), Russia (US$ 23 million), Saudi Arabia (US$ 14 million) and Turkey (US$ 4.6 million). Actually, there are 22 different countries which have imported at least US$ 100,000 worth of refrigerators and freezers in 2006. Hence, it seems that, even if the project was motivated by the needs of Iraq, the owners are diversifying their markets. It would seem to demonstrate that such products can be manufactured in Syria and exports markets can be found as diverse as Saudi Arabia, Russia and Turkey – all three countries manufacture the same

*35 HS 7326 includes: grinding balls, other forged or stamped articles of iron and steel,

articles of iron or steel wire and other articles of iron and steel.

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products and so the Syrian products were competing with products made in those countries. If anything, it shows that Syria has a general competitive advantage in manufacturing, rather than any specific factor. xxix. HS 85: Electrical, electronic equipment This sector’s characteristics are very much like those of the previous product, HS 84. Exports were worth US$ 227 million in 2006. The growth in value since 2001 has been 246% per annum and the growth in the share of World trade has been 230% pa. Although exports were over US$ 100,000 in 19 different product headings, 97% of the export value (US$219 million) was in only one commodity, HS 8544 Insulated wires and cables. However, there are some indications that there are at least of a couple of other sectors where export development is starting. These are: HS 8507 Electric accumulator with exports of US$ 363,000 and a growth in exports of 16% per annum and an increase in the share of World trade of 1% pa. The other sector is HS 8504 Electric transformers with exports of US$ 329,000 and a growth in exports of 26% per annum and an increase in the share of World trade of 11% pa. The ITC have classified both sectors as “Emerging”. The sector exports to 19 different countries with values of US$ 100,000 each. The main market is Kuwait (US$ 97 million), Turkey (US$ 49 million), Iraq (US$ 44 million) and then Jordan and Saudi Arabia. All these countries have local manufacturers which is indicative that the Syria factories must be competitive. xxx. HS 94: Furniture, lighting, signs, prefabricated buildings Syria exported US$ 60 million of this Sector in 2006. The ITC classified the sector as “emerging” because the growth of the Sector has developed only in recent years. The growth since 2001 has been 118% per annum and the increase in the share of World trade has risen by 105% per annum. The number of products being exported with values in excess of US$ 100,000 is 26. The largest subsector is HS 9403 Other furniture and parts thereof*36 with US$ 45 million. Other subsectors are: HS 9405 Lamps & lighting fittings, signs and nameplates illuminated with US$ 6 million and HS 9404 Mattress supports, mattresses, quilts, etc with US$ 5 million. The main country of destination is Iraq with purchases of US$ 14 million and other destinations are Saudi Arabia (US$ 9 million), Cyprus (US$ 5.5 million), the Lebanon (US$ 5 million) and Jordan (US$ 3.7 million). However, there were exports to another 33 countries with a value of at least US$ 100,000 each. Looking at Turkey, Jordan and Tunisia, although each country is increasing its respective share of World trade, the increases are far smaller than Syria’s. Syria’s increase is 105% pa, while Turkey’s is 6% pa, Jordan’s is 8% pa and Tunisia is 3% pa. Turkey exports per person US$ 10,000 worth of this sector, while Jordan exports US$ 7,600 per person and Tunisia exports US$ 11,000. If Syria exported the same as, say,

*36 This is other than seat and medical, surgical and dental furniture

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Tunisia per head of population then its exports would increase to US$ 207,000, an increase of nearly 3.5 times. Although Turkey exports significant amounts to Iraq, it also exports to Germany, France, Greece and the Netherlands. Tunisia also exports to France and Germany and also Italy, Spain and Algeria. As Syria seems to be more competitive than Turkey and Tunisia, it would be reasonable to suppose that Syria could penetrate these markets.

7. Findings and Recommendations

Normally, arising from a review such as this, there are mainly findings rather than recommendations. However, in this case, there are several recommendations which need mentioning as they will affect the prospect of continued growth in Syrian exports. 7.1. Findings

The findings are twofold: 1. From the plans of the Government, as laid out the 10th Five-Year Plan (2006-

2010) and the Executive Reform Plan (2008-2010), there arise many opportunities for private businesses throughout the Economy*37:

Government expenditures are a major source of business for the private sector.

Also Government’s development plans and change to the Law can be the stimulus for new businesses which may become major enhancers to the Economy.

Regarding the latter, the Government’s BOT projects in cell phones has given rise to two major private enterprises*38, which possibly could use the expertise gained to develop similar enterprises abroad; for instance, in Africa and Central Asia.

BOT*39 and similar structures relating to Public-Private Partnership could be used by the Government to great benefit in many other sectors; particularly in developing agriculture, forestry, water, power, renewable energy, transport (particularly port development), education and health. The BOT model has great advantages in that the Government may need to make relative small outlays and in due course will receive back a major developed enterprise. Even when the model chosen is BOO*40, the Government will remain, in effect, a partner through profit tax on income from the venture which, if it had remained

*37 Section 2 of the Report looks at each of the major sectors of the Economy in turn and

discusses impact that the 10th FYP and the ERP has on each sector. *38 See Section 2.8b for more details on this particular BOT contract. *39 BOT – Build, Operate and Transfer. The scheme requires the private sector partner to

build the project, operate for an agreed number of years and then transfer it back to public ownership.

*40 BOO – Build, Operate and Own. The scheme requires the private sector partner to

build the project, operate for an agreed number of years and then, providing a number of conditions have been fulfilled, he may own the project.

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in Government hands, may never have taken off or may have remained a liability to Government.

2. From the review of the Syria’s export statistics, it has emerged that the private sector has established itself as competitive in the World economy and has started to export successfully*41. In some cases, the value of the exports are substantial. The more interesting and, possibly, more important achievements have been in non-resource based exports. Moreover, some of the destinations are surprising, such as Angola and Senegal, which also signal an achievement.

Some 50 or more sectors (HS headings*42) have been identified and 30 have been written up in Section 5.3. However, some care is needed in using the data. Although the Sector may well be experiencing an overall increase in exports, it may be that only in certain subsectors are exports actually increasing. In the write-ups for each Sector, indications are given as to which subsectors are experiencing increased exports.

One caveat is important. Most, if not all of the export achievements have been made by entrepreneurs who have good experience producing the product exported. They are exporting usually to known buyers, who may also be their partners in business and friends. There would be no sense and probably a lot of tears if an entrepreneur were to be encouraged into a venture he knew nothing about and advised to sell to persons whom he did not know.

In general, exporting takes time with both the seller and buyer spending time to get to know one another and build up trust – trust that the products to be delivered will meet specifications and trust that, once delivered, the buyer will pay.

The size and breadth of the exporting, which in most cases has only started in the last few years, is such that, if enabled to continue, it could replace with ease the loss of oil exports and increase in oil imports which will occur over the coming decade.

There is though a problem. For most of the exporters, they have already contacted those whom they know and have built up an export business with them. The next steps are to increase production and to approach new markets. It is here that assistance from the Government is required.

7.2. Recommendations

If the export achievements of the last few years are going to be consolidated and developed, there are two needs, and these two needs were explicitly mentioned by Government in the Executive Reform Plan (2008-2010) for the manufacturing sector: Industrial Development Council Finance, via the creation of an Industrial Development Fund Market access support via the creation of an Export Promotion Centre Export processing zones

However, there were few details given in the ERP and, in this review there were recommendations made relating to these and other initiatives. *41 See Section 3 for details about these exports. *42 HS – Harmonised System, which is a method of classifying trade statistics adopted by

the United Nations.

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a. Industrial Development Council*43 The idea of a high level council is good. Perhaps it should have a wider remit than just industry and be called the “Investment Development Council”.

Ideally, the Council should be chaired by the highest person in Government. In other country the Council is either chaired by the President or Prime Minister. Often the Council is given the status of a ministry.

Practical working considerations dictate that the Council’s membership should be small in order to facilitate discussions and quick decision making. Ideally, the membership should be no more than 10 and composed of Government Ministers, representatives from the private sectors and some experts. It is worth considering appointing an expert from abroad who has practical and detailed knowledge of attracting investment in a successful country. The Council should be able to call other persons to attend meetings should the topics be relevant to them or their expertise is required. What is most important is that the Council has an excellent secretariat. The secretariat should be headed by a person of ministerial level, say the Minister for Industry or Economic Planning. In this way the Secretariat has the authority to request information and reports. The Secretariat should have the capabilities of carrying out its own analyses and make recommendations to the Council.

b. Finance

Those companies which are exporting are starting to come close to the limits of their factories’ operations. There is a need for two types of finance: venture capital (equity) finance and long-term loans and the provision of both are recommended*44.

i. Venture capital

Many entrepreneurs have invested heavily in their businesses and the next tranche of money needed is a step too far for them. The businesses are mainly family affairs and so bringing in non-family members is difficult and may cause conflicts about running the business. The answer is often institutional equity finance which takes a minority holding after having evaluated the business prospects and the capability of the entrepreneur. Although the financier will have a place on the board of directors and access to all information, he will not involve himself in the day-to-day running of the business. However, if called upon, or if he suspects problems are emerging, he will involve himself.

Once an institutional equity financier has agreed to provide finance, even if it is a small amount, others often are willing also to invest and banks are more willing to lend. Sometimes, the entrepreneur and his family need reassurance and the fact that an equity financier is willing to invest is sufficient for the family to commit further money. ii. Long-term loans

It is difficult to borrow long-term in Syria pounds. It may be fairly easy to borrow long-term in foreign currencies, but then the changes in the exchange rates between the currency borrowed and the Syrian pound are at the risk of the entrepreneur. There have been several new banks opening up in Syria in recent years, but, unfortunately, none of them have a source of long-term money denominated in Syrian *43 The Council is discussed in greater detail in Appendix H. *44 Finance is discussed in greater detail in Appendix H.

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pounds. The banks would probably have to raise additional equity if they were to use that source of finance.

There would seem to be two ways forward:

A fund would be established to which the private sector would subscribe which would have as its purposes lending long-term loans to banks for on-lending to industry or perhaps export manufacturers. The banks would be at risk to repay the fund but there would be no exchange rate risk as all the funds would be denominated in Syrian pounds.

The alternative approach would be for the Central Bank of Syria to open a long-term lending window to banks denominated in Syrian pounds. Again the banks would be at risk to repay the Central Bank.

c. Market Access Support

There are two distinct support measures recommended:

iii. Export Credit Insurance

If one is ever going to export to Arabia or to Europe or for that matter anywhere else, it is necessary to grant credit terms*45. If one refuses credit terms, it is still taken in one way or another, such as by disputing aspects of the shipment and thereby delaying payment. Confirmed letters of credit are a way around many of the problems, but often buyers refuse to open them, preferring unconfirmed letters of credit or promissory notes and the like. Credit insurance allows the exporter to offer credit terms and obtain an insurance policy to protect him against non-payment. Using the policy as collateral, the exporter can then receive a working capital loan until payment is made.

Brokerages can be set up by insurance companies and others with knowledge of export contract negotiations and the policies can be written by any of the major international export credit insurers. The only role necessary for Government is a confirmation by the Central Bank that they will accept policies written by the major export credit insurers as assets in the risk asset weightings of commercial banks operating in Syria.

iv. Export Market Information

In the Executive Reform Plan (2008-2010), there is a proposal to create an export promotion centre. At the moment, the Syrian Enterprise & Business Centre is providing that service. Rather than have two institutions providing the same service, it would be better if the SEBC continued in the role of being Syria’s export promotion centre. What would be useful is that the Government makes available a budget line for export promotion to be spent on export promotion visits abroad, financial assistance to SMEs to attend promotional events abroad, seminars in Syria, publications and advertising. This would be in addition to the SEBC’s own budget for export promotion and would be in response to applications made by the SEBC on behalf of themselves, other business associations and individual exporters. The SEBC has two offices; in Damascus and Aleppo. For useful promotion it needs a far greater presence in the marketplace. This would be difficult and costly. A way forward would be for the SEBC to put together information and sources of information and offer it to independent Syrian consultants who would undergo training at the SEBC and pass a test to ensure that the consultant does understand the information.

*45 See Appendix H for a brief discussion about Export Credit Insurance.

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The consultants may then use the information, free of charge, to sell their services to manufacturers and traders in the knowledge that the SEBC will support them with further information and guidance as and when needed. However, these consultants would be independent and not be representatives of the SEBC. In this way, the SEBC would be assisting Syrian consultants in developing their businesses and securing a far greater reach than would ever be possible with the SEBC working by itself. Technology is important, but if a company is lacking the technical know-how, then it is certainly not ready to export. For entrepreneurs in such a position, the way forward is a joint venture with a provider of the know-how*46. The technology that an exporter may need relates to the quality control and quality inspection procedures needed to ensure that his product will conform to the specifications of the buyer. d. Export Processing Zones The ERP (2008-2010) for manufacturing mentioned the establishment of export processing zones*47. As by-the-way, in the report it was mentioned that the crucial advantage of an export processing zone was that imports can enter the country in sealed containers and not stop at customs border posts but travel directly to the Zones. It was recommended that should not be necessary for all factories to move to an EPZ to enjoy the benefits of manufacturing under a duty free regime; larger factories could become Export Processing Zones proving that there is a secure warehouse where goods can be unloaded and stored and duty paid only when they leave the warehouse. e. Leasing This has not been mentioned in the 10th FYP or the ERP, but it is a vital service, particularly the leasing of factory premises*48. Many foreign investors are reluctant to commit large sums of money in real estate in a developing country when they prime activity is manufacturing. Real estate companies tend to trade buildings and are mindful of movements in real estate prices. However, a manufacturer looks on his building as a necessity and a sunk cost only to be sold when the manufacturing venture is sold. Hence, the risk involved in sinking large amounts of foreign currency in a building in another country is a major disincentive to invest. If the premises could be leased and the foreign currency risk avoided, then many businessmen would be more willing to invest.

*46 It seems that many Turkish companies are setting up in Syria currently in order to take

advantage of Syria’s free trade regime with other members of the Greater Arab Free Trade Agreement. Often they set up as a joint venture with a Syrian partner.

*47 Export Processing Zones were discussed in detail in Appendix H. *48 Leasing is discussed in detail in Appendix I.

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Appendix A

An Overview of the Challenges facing Syria It is not too trite to say that Syria is approaching several cross-roads. It is also true that many countries are also at or approaching cross-roads, but that does not diminish the importance of the event for Syria. The people/government of each country has to understand its own position and faces a challenge in determining its own strategies to take their country along their chosen direction.

The cross-roads, as is the case for Syria, have economic, social and political dimensions and, therefore, the strategies have to be multifaceted and it has to be accepted that the various dimensions means that the strategies are not easy to describe and certainly not easy to implement.

This report is a contribution to those whose task it is to formulate the strategies in that it reviews the main sectors of Economy and looks in depth at agricultural and industrial sectors in order to identify and analyse the potentials of those sectors to perform and develop. However, there are also some contributions towards the discussion about what, at least, some of the economic strategies should be.

In order to place this report into context, it is necessary to describe the position that Syria is in and, in particular, to describe, some of the characteristics of the road it is on and the cross-roads that are being approached. Below are described four of characteristics of the road and very briefly a description has been made of what will happen if Syria stays on the road it is on and not take any of the alternative routes: i. Syria is a relatively resource-rich country, but its hydrocarbon (oil and natural

gas) resources have a limited life; especially for oil. In about 20 years, give or take a few years, providing that extraction rates are not increased, the oil resource will run out and, in less than 40 years, the natural gas reserves will be depleted*49. New discoveries may extend the life of the resources by, say, ten years. However, it is very unlikely that the life can be extended by 20 to 50 years. Already, Syria is starting to import more and more of its oil needs and the cross-over point when it spends more on importing energy than it earns in exporting oil is near*50. Moreover, Syria is already beyond the point where it earns less exporting all products than it needs to pay for all imports*51.

*49 According to the Executive Reform Plan 2008-2010, Syria has 3 billion barrels of oil

reserves left and an annual extraction of 155 million barrels, giving a life expectancy for the resource, at present pumping levels, of 19 years, assuming that it all can be extracted economically. For natural gas, there are reserves left of 295 billion m3 and an annual extraction of 8 billion m3, giving a life expectancy at current production levels of 37 years. However, in the next 20 or so years, the population is likely to double and demand for oil and gas will increase probably at an even faster rate, necessitating higher extraction rates and so shrinking the life expectations of the resources.

*50 In 2006, Syria exported US$ 4.4 billion of mineral fuels, oils and distillate products and

imported US$ 3.1 billion, a ratio of 1.4:1; whereas, in 2000, Syria exported US$ 3.5 billion and imported US$ 0.21 billion; a ratio of nearly 17:1. In value terms between 2000 and 2006, imported fuel has grown by nearly 15 times while exports have grown by less than 1.3 times.

*51 The cross-over point when the value of imports exceeded exports was between the

years 2003 and 2004. The current high oil price may cause a second cross-over; but, if it occurs, it is unlikely to be sustained.

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ii. Syria has a rapidly growing population; some 38% of the population is under 15 years old*52. Up until now, more or less everybody coming onto the job market could find a job*53; albeit many were created in the public sector in government, social services, state enterprises and the armed forces*54. Certainly, the private sector is not providing sufficient new jobs for those approaching working age*55. However, in no country has the public sector ever been able to replace the private sector as the main source of employment for long. The strain contributed to breaking the Soviet Union, and China*56 is looking more and more to the private sector to provide the jobs needed.

iii. Syria has a difficulty in providing all the water needed for its people and economy. It has been estimated that some 3 billion cubic metres is taken more that is replaced each year*57. It may take years before the full impact is felt*58, but, by then, and unless technology comes to the rescue to mitigate the impact, the result could be catastrophic. Of course, the rapidly rising population is causing the country to accelerate towards that there are real water shortages. The people’s needs in truth may not actually be so much, but people need jobs and it is agriculture’s, industry’s and commerce’s water needs which may be most demanding.

*52 According to CBS statistics for 2006. *53 The unemployment rate in 2006 according to CBS data was 7.4%, which is not

dissimilar to unemployment rates in the EU; but the number of persons aged 15 years and more, who are not in the labour force, was 6.5 million indicating that the participation rate is low and the numbers of person dependent upon each worker is high.

*54 In 2006, nearly 1.4 million persons were employed in the public sector, a rise of 10.5%

since 2004. This compares with also nearly 1.4 million employed for a wage in the private sector in 2006, but this represented a decline of 2% since 2004. Other categories are employers in the private sector, family workers, and self-employed.

*55 According to CBS data; apart from a decline in wage jobs between 2004 and 2006,

people found jobs as employers (0.5 million in 2006, a rise of 58% since 2004), and self-employed (1.3 million in 2006, a rise of 48% since 2004). The numbers of family workers in 2006 were 0.4 million, a decline of 5% since 2004.

*56 Because of China’s “one child” policy, the natural increase in the population has all but

ceased; its challenge is in providing new jobs for people leaving agriculture and rural areas.

*57 According to the Executive Reform Plan’s paper on Agriculture and Irrigation (2008-

2010), the total annually available water to Syria is estimated to be 15 billion m³. However, consumption is calculated to be 18 billion m³, leading to an over-exploitation of about 3 billion m³ annually.

*58 Already, it has been noticed that the water table in many areas is falling causing water

bore holes to be extended. Also it has been noticed, according to Chapter 15.1 of the 10th Five Year Plan that poor sewage and industrial waste water disposal is contaminating drinking water supplies in some places.

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iv. Households and industry need electricity*59. Syria has a fairly hot climate and few buildings are constructed to take advantage of natural cooling processes – such designs were incorporated into buildings a hundred or more years ago. At midnight or at 3 am, there are still people awake; air conditioners are still working; the streets are lit; trucks are delivering goods to shops by the time the morning comes. The on-going costs of cooling “modern” buildings must be huge and causing the faster than necessary depletion of Syria’s resources in energy. Probably, the extra on-going costs caused by the omitting method to naturally cool the interior of building far out way the original capital costs. Moreover, the capital cost of new electricity power stations is huge; the price of electricity has been subsidised by Government. It is unlikely that the Government will be able to afford to build the power stations and subsidise the cost for long*60. Equally, it is unlikely that the private sector will invest in new capacity without some workable arrangement that will enable them to operate commercially; the trick is to find that workable arrangement; see Appendix G for a possible way forward.

In truth, Syria has not as yet reached the cross-roads and so has a little time to choose which road it will take at each cross-road; for instance: i. The inevitability of the end to the oil and gas resources is fairly well accepted. It

may be delayed, but not avoided. Hence, it is necessary to introduce energy saving initiatives and to build up alternative export products which will earn foreign currency sufficient to pay for the oil imports needed.

If a product is exportable; that is, it is such that its price, quality, design, packaging, delivery time, repair or replacement arrangements, etc, are acceptable to foreign buyers, then it will very probably be acceptable to domestic buyers as well. However, the reverse is not true; a product that is acceptable to domestic purchasers may not be acceptable to foreign buyers and may not be able to compete against imports. It will take time to build up new businesses sufficient to replace the earnings from oil and gas, but there is a window of some ten to twenty years, which could be sufficient. This report directly addresses this issue.

ii. Populations take time to react to over-population; the reason being that the

cross-over point between sufficient and too many people is blurred. Technological change has enabled far more people to live on any particular piece of land than was possible in the past due to specialisation, trade, and

*59 According to the 10th Five Year Plan relating to Energy, electrical energy production

rose between 2000 and 2004 by 6.2% per annum, while peak demand rose by 8.7% per annum (actually domestic peak demand rose by 9.7% per annum, which was offset by a decline in exported electricity), the number of subscribers rose by 5.1% per annum, whilst the natural increase in the population was 2.1% per annum. Yet despite these growth rates, the total capacity of Syria’s power stations only rose from 7,003 MW to 7,079 MW.

*60 The 10th Five Year Plan estimates that US$ 14 billion will have spent on electricity

generation over the Plan’s duration; US$ 4.8 billion in new investments and US$ 9.3 billion spent on operating costs; such as oil – but this estimate was made at US$ 40 per barrel of crude oil.

SEBC/SSP 97

developments in agriculture, etc. In the past, the main causes for population numbers to stabilise have been: assured financial protection in old age, a desire for consumer products, the necessity and ability for women to work outside of the home in order to achieve the desired standard of living for the family, and the ability for couples to manage their birth rate and timing of births. Education has played a major role in enabling the factors to operate. This phenomenon is a dilemma facing most developing countries, but it also faced all developed countries in the past, only they had new lands to migrate to; an option no more open to countries.

Governments do have a role and can, if they wish, can directly influence the decision of couples and their ability to determine the number of children they have. Providing jobs and the means to save for a pension are possibly the most important means to give people the possibility of enjoying “the good life” as well as enabling them to feel secure about their old age and so cause then to manage the size of their family. Again, this report directly addresses this issue by revealing possible investment opportunities.

iii. Good water management can only provide some additional time for the above

two factors to have an effect. However, Government has a crucial role in setting the standards to be followed in water conservation and management. Water is a valuable commodity and should be priced as such*61. If water is priced economically, then developments will only occur which are sustainable under such conditions.

Governments have a clear role in educating people on water management and in pricing the utility such that water conservation takes place and economic developments are located in regions where water is plentiful. Governments also play a crucial role in ensuring utility-providers do not waste the commodity. A way this can be achieved is by charging water treatment plants for the unprocessed water extracted from wells and rivers*62. If the resource is priced economically, and those who need support are helped in other ways, then the sector becomes open for private sector development, releasing the government from the burden of raising capital and managing the operations. Government would still have a role as the protector of consumers by setting and monitoring water quality standards and possibly by setting mark-ups. Possibly the approach outlined in Appendix could be adapted to enabling the private sector to invest in the provision of water and for Government to be able

*61 Sometimes, governments price water as a means to support those in the community

who are disadvantaged. This is laudable, though it is a very blunt instrument and will lead those who are not disadvantaged to use the resource extravagantly. A better approach would be to help directly those who lack income and let those who do not need support to pay an economic price.

*62 This would be a good idea even for state-owned water companies because

conservation measures and the retention of rainwater would become ways to demonstrate their efficiency/ effectiveness or profitability. It would also be necessary if the government ever contemplated attracting the private sector into the provision of water.

SEBC/SSP 98

to focus its support on those who need help in paying for the economic cost of water.

iv. Apart from food and water, electricity is possibly the most important factor in

modern life and in shaping modern life. Electricity is very much like water in that subsidised prices lead to waste both by electricity providers and consumers. Like water, if the pricing of the utility can be economic and any subsidy paid directly to consumers who need it, then electricity providers would have the motivation to reduce their wastage and consumers would likewise reduce their wastage.

It would also mean that the private sector can be encouraged to set up power stations because the operations would be based on economics from the acquisition of the raw materials to the sales price to individuals. Any subsidy would be channelled by Government directly to those who need it most. See Appendix for an approach to setting up such a system for electricity generation.

SEBC/SSP 99

Appendix B Summary Export Tables

Table B1: Trend in the Growth in Syria's Share of World Exports, 2003 to 2006 Table B2: Comparison of Syrian Exports with those of Turkey, Tunisia and Jordan,

2006 Table B3: Comparison of Syrian Exports per Person with those of Tunisia, Jordan

& Turkey, 2006

SEBC/SSP 100

Appendix C Exports of Syria, 2006

Syria's Exports - 01 Live animals (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

0100 All industries in sector 01 267,994 1.9 6 9 95.1

0104 Live sheep and goats 266,103 22.8 2 7 95.6 0106 Live animals, nes 852 0.1 7.0 -3.0 1 3 87.6 0101 Live horses, asses, mules and hinnies 611 0.0 126.0 116.0 2 2 87.4

0105 Live poultry 392 0.0 -7.0 -15.0 1 1 100.0 0102 Live bovine animals 0 0.0 0 0 0.0

Leading partners

World 267,994 1.9 6

Saudi Arabia 218,779 1.5 3

Kuwait 19,417 0.1 4

Qatar 16,766 0.1 2

Jordan 7,071 0.0 7.0 8.0 2

Lebanon 3,772 0.0 -10.0 -8.0 1

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Syria's Exports - 02 Meat and edible meat offal (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

00

0)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts

>

US

D 1

00.

000

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

0200 All industries in sector 02 369 0.0 2 1 97.5

0210 Meat & edible meat offal 234 0.0 2 1 100.0 0201 Meat of bovine animals, fresh or chilled 70 0.0 0 0 100.0 0204 Meat of sheep or goats - fresh, chilled or frozen 39 0.0 0 0 100.0 0206 Edible offal of red meat 15 0.0 0 0 0.0

SEBC/SSP 101

0207 Meat edible offal of poultry meat 11 0.0 0 0 100.0 0202 Meat of bovine animals, frozen 0 0.0 0 0 0.0 0208 Meat and edible meat offal nes 0 0.0 0 0 0.0

Leading partners

World 369 0.0 2

Iraq 265 0.0 1

Jordan 72 0.0 0

Saudi Arabia 17 0.0 0

Lebanon 9 0.0 0

Kuwait 0 0.0 0

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Syria's Exports - 03 Fish, crustaceans, mollusks, aquatic invertebrates nes (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

0300 All industries in sector 03 262 0.0 0 0 73.7

0307 Moluscs 86 0.0 0 0 100.0 0305 Fish, cured or smoked and fish meal fit for human consumption 61 0.0 0 0 100.0 0301 Live fish 47 0.0 0 0 100.0 0303 Fish, frozen, whole 39 0.0 0 0 100.0 0302 Fish, fresh, whole 24 0.0 0 0 100.0 0304 Fish fillets and pieces, fresh, chilled or frozen 0 0.0 0 0 0.0 0306 Crustaceans 0 0.0 0 0 0.0

Leading partners

World 262 0.0 0

Turkey 87 0.0 0

Romania 55 0.0 0

Jordan 49 0.0 0

Guatemala 24 0.0 0

SEBC/SSP 102

Iraq 24 0.0 0

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Syria's Exports - 04 Dairy products, eggs, honey, edible animal products nes (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

0400 All industries in sector 04 123,976 0.3 87.0 74.0 15 11 71.3

0402 Milk and cream, concentrated or sweetened 76,831 0.7 3 6 72.9 0406 Cheese and curd 40,920 0.2 56.0 42.0 4 9 75.8 0403 Buttermilk and yogurt 3,453 0.1 24.0 11.0 7.0 2 5 91.6 0401 Milk and cream, not concentrated nor sweetened 1,416 0.0 2 2 99.9 0405 Butter and other fats and oils derived from milk 741 0.0 8.0 -3.0 1 2 78.4 0404 Whey and natural milk products nes 206 0.0 1 1 100.0 0407 Birds' eggs in shell 206 0.0 -36.0 -49.0 1 0 79.6 0408 Birds' eggs dried 139 0.0 1 1 100.0 0409 Natural honey 59 0.0 0 0 100.0 0410 Edible products of animal origin, nes 0 0.0 0 0 0.0

Leading partners

World 123,976 0.3 87.0 15

Lebanon 47,952 0.1 77.0 6

Jordan 24,423 0.1 123.0 9 United Arab Emirates 16,011 0.0 121.0 59.0 6

Saudi Arabia 15,363 0.0 98.0 7

Iraq 5,788 0.0 5

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.211

SEBC/SSP 103

Syria's Exports - 06 Live trees, plants, bulbs, roots, cut flowers, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

0600 All industries in sector 06 1,892 0.0 4 5 56.4

0602 Plants, live, nes (incl their roots), cuttings & slips; mushroom spawn 1,160 0.0 2 4 70.4 0601 Bulbs, tubers, corms, etc 428 0.0 1 1 100.0 0603 Cut flowers and flower buds for bouquets, fresh or dried 218 0.0 88.0 78.0 1 0 78.9 0604 Foliage, branche etc 87 0.0 0 0 93.8

Leading partners

World 1,892 0.0 4

Lebanon 389 0.0 1

Netherlands 373 0.0 1

Jordan 291 0.0 1

Saudi Arabia 213 0.0 1 United Arab Emirates 127 0.0 0

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.211

Syria's Exports - 07 Edible vegetables and certain roots and tubers (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

har

e o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

ma

rket

s

>

US

D 1

00

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

0700 All industries in sector 07 387,716 1.0 41.0 28.0 37 31 66.2

0702 Tomatoes 165,662 2.9 1 12 77.3 0710 Frozen vegetables 55,109 1.4 154.0 142.0 5 13 83.1 0713 Dried vegetables, shelled 51,995 1.2 54.0 44.0 7 19 69.1 0709 Vegetables nes, fresh or chilled 24,096 0.3 3 8 73.8 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled 15,113 1.8 59.0 45.0 3 8 79.4 0705 Lettuce and chicory, 13,973 0.8 3 6 88.2

SEBC/SSP 104

fresh or chilled

0706 Carrots, turnips and salad beetroot, fresh or chilled 13,943 1.3 38.0 22.0 2 9 81.0

0701 Potatoes 12,629 0.5 2 10 70.3 0711 Vegetables, provisionally preserved (unfit for immediate consumption) 11,883 2.4 25.0 39.0 18.0 2 9 67.2 0704 Cabbages and cauliflowers,fresh or chilled 9,026 0.6 72.0 62.0 2 6 89.9 0712 Dried vegetables 5,955 0.3 31.0 18.0 3 4 90.2 0703 Onions, garlic and leeks, fresh or chilled 5,108 0.2 337.0 321.0 2 4 94.0 0707 Cucumbers and gherkins, fresh or chilled 2,988 0.2 189.0 172.0 1 3 96.1 0714 Manioc, arrowroot salem (yams) etc 224 0.0 1 0 79.2

Leading partners

World 387,716 1.0 41.0 37

Saudi Arabia 123,236 0.3 24.0 42.0 21

Lebanon 68,192 0.2 55.0 19

Iraq 65,266 0.2 21 Other Europe n.e.s 35,085 0.1 7

Kuwait 20,447 0.1 27.0 31.0 22

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 08 Edible fruits, nuts, peel of citrus fruits, melons (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

0800 All industries in sector 08 176,815 0.3 27 26 68.6

0808 Apples, pears and quinces, fresh 86,903 1.4 53.0 42.0 2 14 90.5 0802 Nuts nes 27,315 0.4 39.0 18.0 6 15 82.0 0805 Citrus fruit, fresh or dried 17,812 0.2 5 8 89.5 0809 Apricots, cherries, peaches, nectarines, 14,787 0.5 4 12 76.2

SEBC/SSP 105

plums & sloes, fresh

0807 Melons (including watermelons) & papayas, fresh 12,898 0.6 2 9 71.1 0813 Dried fruit 6,109 0.5 2 3 93.1 0806 Grapes, fresh or dried 4,194 0.1 1 6 71.4 0804 Dates, figs, pineapples, mangoes, avocadoes, guavas 4,087 0.1 2 9 69.0 0810 Fruits nes, fresh 2,004 0.0 32.0 15.0 1 5 62.1 0812 Provisionally preserved fruits & nuts (unfit for immediate consumption) 483 0.3 1 1 71.6 0811 Frozen fruits & nuts 113 0.0 1 0 100.0 0801 Brazil nuts, cashew nuts & coconuts 63 0.0 0 0 100.0 0814 Citrus fruit and melon peel 47 0.1 0 0 100.0 0803 Bananas and plantains, fresh or dried 0 0.0 0 0 0.0

Leading partners

World 176,815 0.3 27.0

Egypt 63,924 0.1 103.0 6.0

Jordan 29,698 0.1 35.0 46.0 14.0

Saudi Arabia 27,558 0.1 18.0 United Arab Emirates 22,675 0.0 12.0

Iraq 6,755 0.0 4.0

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 09 Coffee, tea, mate and spices (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

0900 All industries in sector 09 184,456 0.8 17.0 41.0 0.0 14 52 38.1

0909 Seeds of anise, badian,fennel,coriander, cumin, etc. 178,140 44.1 16.0 42.0 5.0 5 50 38.7

SEBC/SSP 106

0902 Tea 3,135 0.1 3 3 96.7 0910 Ginger,saffron,turmeric, thyme, bay leaves & curry 1,514 0.2 9.0 -2.0 -3.0 2 6 55.8

0901 Coffee 1,395 0.0 3 6 60.6 0904 Pepper, peppers and capsicum 194 0.0 61.0 50.0 1 1 81.4 0908 Nutmeg, mace and cardamons 44 0.0 0 0 100.0

0903 Maté 24 0.0 0 0 100.0 0906 Cinnamon and cinnamon-tree flowers 0 0.0 0 0 0.0

0907 Cloves 0 0.0 0 0 0.0

Leading partners

World 184,456 0.8 17.0 41.0 14

United Arab Emirates 30,197 0.1 3

Saudi Arabia 21,324 0.1 11.0 38.0 6

Egypt 18,677 0.1 27.0 61.0 3

Brazil 15,381 0.1 25.0 65.0 2

Morocco 12,869 0.1 2

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 10 Cereals (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

v

alu

e (

% p

.a.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

1000 All industries in sector 10 195,707 0.4 12.0 4.0 6 8 88.2

1001 Wheat and meslin 194,886 0.9 14.0 6.0 2 8 88.4 1005 Maize (corn) 458 0.0 2 2 100.0 1008 Buckwheat, millet and canary seed 150 0.0 1 0 75.6 1003 Barley 129 0.0 -64.0 -72.0 1 1 100.0 1006 Rice 83 0.0 0 0 100.0 1007 Grain sorghum 0 0.0 0 0 0.0 1002 Rye 0 0.0 0 0 0.0

Leading partners

World 195,707 0.4 12.0 6

SEBC/SSP 107

Egypt 95,121 0.2 111.0 1

Jordan 45,392 0.1 123.0 3

Italy 32,184 0.1 2

Tunisia 14,155 0.0 1

Iraq 8,137 0.0 3

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 11 Milling products, malt, starches, inulin, wheat gluten (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rket

s (%

)

1100 All industries in sector 11 13,846 0.2 5 6 89.7

1101 Wheat or meslin flour 7,582 0.3 1 2 99.3 1108 Starches; inulin 4,577 0.3 2 6 80.2 1103 Cereal grouts, meal and pellets 1,101 0.2 1 3 93.6 1102 Cereal flours other than of wheat or meslin 456 0.1 1 1 100.0 1105 Flour, meal and flakes of potatoes 69 0.0 0 0 100.0 1104 Cereal grain, worked post hulling, excluding rice 59 0.0 0 0 100.0 1106 Flour and meal of vegetables, roots and tubers or fruits 2 0.0 0 0 0.0 1109 Wheat gluten, whether or not dried 0 0.0 0 0 0.0 1107 Malt, whether or not roasted 0 0.0 0 0 0.0

Leading partners

World 13,846 0.2 5

Jordan 5,807 0.1 4

Iraq 5,430 0.1 3

Egypt 1,173 0.0 2

Lebanon 621 0.0 1

Saudi Arabia 503 0.0 2

SEBC/SSP 108

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 15 Animal, vegetable fats & oils, cleavage products, etc (2006, US$ 000)

Industry E

xp

ort

s (U

S$

000

)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

mar

ket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rket

s (

%)

1500 All industries in sector 15 197,978 0.4 87.0 72.0 14 29 69.0

1509 Olive oil and its fractions 181,294 3.2 105.0 86.0 2 28 74.3 1507 Soya-bean oil&its fractions 6,700 0.1 2 3 99.8 1512 Safflower, sunflower/cotton-seed oil & fractions 4,579 0.1 3 3 95.8 1515 Fixed vegetable fats&oils & their fractions 1,814 0.1 72.0 58.0 1 3 74.3 1516 Animal or veg fats, oils&fract, hydrogenated 1,249 0.0 1 3 100.0 1517 Margarine 877 0.0 2 2 100.0 1514 Rape,colza or mustard oil & their fractions 713 0.0 1 1 100.0 1508 Ground-nut oil&its fractions 333 0.2 1 1 100.0 1510 Other oils from olives 308 0.1 1 1 100.0 1501 Lard and other pig & poultry fat 32 0.0 0 0 100.0 1511 Palm oil & its fraction 4 0.0 0 0 0.0 1518 Animal or vegetable fats & oils chemically modified; inedible mixtures 1 0.0 0 0 0.0 1521 Vegetable waxes, beeswax & other insect waxes 1 0.0 0 0 0.0

Leading partners

World 197,978 0.4 87.0 14

Italy 92,689 0.2 333.0 4

Spain 24,193 0.1 189.0 2

Saudi Arabia 19,721 0.0 51.0 5

Lebanon 13,044 0.0 155.0 7

United States of 7,264 0.0 170.0 2

SEBC/SSP 109

America

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 20 Vegetable, fruit, nut, etc, food preparations (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

kets

>

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

2000 All industries in sector 20 151,082 0.4 57.0 44.0 26 34 54.1

2006 Sugar preserved fruits and nuts 61,299 13.1 1 11 79.5 2007 Jams,fruit jellies & marmalades 36,648 2.1 35.0 40.0 18.0 2 16 80.9 2005 Prepared or preserved vegetables nes (excl. frozen) 20,464 0.3 60.0 47.0 7 22 57.3 2001 Cucumbers, gherkins and onions preserved by vinegar 16,748 1.4 28.0 16.0 2 12 77.7 2002 Tomatoes prepared or preserved 7,276 0.3 29.0 22.0 2 8 68.4 2009 Fruit & vegetable juices, unfermented 6,132 0.1 60.0 46.0 6 9 70.8 2004 Prepared or preserved vegetables nes (incl. frozen) 1,578 0.0 2 3 90.2 2008 Preserved fruits nes 567 0.0 3 1 54.9 2003 Mushrooms & truffles, prepared or preserved 369 0.0 1 1 92.8

Leading partners

World 151,082 0.4 57.0 26

Iraq 30,182 0.1 11

Kuwait 28,330 0.1 64.0 11

Egypt 23,159 0.1 48.0 58.0 3

Saudi Arabia 20,110 0.1 28.0 10.0 10

Lebanon 19,780 0.1 74.0 23.0 10

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

SEBC/SSP 110

Syria's Exports - 21 Miscellaneous edible preparations (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

2100 All industries in sector 21 24,393 0.1 122.0 108.0 9 15 78.4

2106 Food preparations, nes 9,055 0.1 74.0 59.0 2 12 67.0 2105 Ice cream 8,423 0.4 1 3 98.9 2104 Soups, broths & preparations thereof 4,049 0.2 2 3 98.0 2103 Sauces mixed condiments & mixed seasonings 2,533 0.0 259.0 247.0 2 3 82.9 2101 Extracts essences & concentrates of coffee and tea 333 0.0 2 1 85.9 2102 Yeast 0 0.0 0 0 0.0

Leading partners

World 24,393 0.1 122.0 9

Iraq 10,580 0.0 3

Jordan 6,056 0.0 70.0 3

Lebanon 2,468 0.0 100.0 5

Saudi Arabia 1,801 0.0 5

Kuwait 560 0.0 1

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - HS 25 Salt, sulphur, earth, stone, plaster, lime, and cement (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

2500 All industries in sector 25 67,294 0.2 8.0 0.0 -6.0 6 17 55.6

2510 Calcium and aluminum calcium phosphates, natural & phosphatic chalk 64,785 5.0 15.0 1.0 9.0 1 12 56.2

SEBC/SSP 111

2520 Gypsum; anhydrite; plasters 722 0.1 19.0 2.0 1 3 98.3 2505 Natural sands of all kinds, except metal-bearing 538 0.0 1 3 89.0 2517 Pebbles, gravel, brocken/crushed stone; macadam of slag or dross 396 0.0 1 1 100.0

2508 Clay nes 233 0.0 1 0 71.4 2515 Marble, travertine, ecaussine etc, 202 0.0 1 0 54.0 2516 Granite, porphyry, basalt, sandstone & other monumental or building stone 133 0.0 0 0 91.4

2509 Chalk 57 0.0 1.0 -12.0 0 0 98.1 2530 Mineral substances, nes 54 0.0 0 0 100.0 2526 Natural steatite, w/n roughly trimmed or merely cut etc; talc 51 0.0 0 0 100.0 2513 Pumice stone;emery;natural corundum & garnet &other natural abrasives 45 0.0 0 0 100.0 2502 Unroasted iron pyrites 42 0.2 0 0 100.0

2524 Asbestos 12 0.0 0 0 100.0 2519 Magnesium carbonate; magnesia; magnesium oxide 10 0.0 0 0 100.0 2522 Quicklime, slaked lime and hydraulic lime 10 0.0 0 0 0.0 2523 Cements, portland, aluminous, slag, supersulfate & similar hydraulic cements 2 0.0 0 0 0.0

Leading partners

World 67,294 0.2 8.0 0.0 6

Lebanon 18,958 0.1 6.0 -1.0 3

Ukraine 10,427 0.0 274.0 1

Netherlands 8,042 0.0 2

Turkey 7,033 0.0 1

Poland 5,912 0.0 1

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

SEBC/SSP 112

11

Syria's Exports - 27 Mineral fuels, oils, distillation products, etc. (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

2700 All industries in sector 27

4,405,623 0.3 3 24 73.2

2709 Crude petroleum oils

3,666,558 0.4 1 8 84.4

2710 Petroleum oils, not crude 736,374 0.2 12.0 -22.0 1 16 78.2 2713 Petroleum coke, petroleum bitumen & other residues of petroleum oils 2,508 0.0 1 3 100.0 2711 Petroleum gases 98 0.0 0 0 100.0 2712 Petroleum jelly; mineral waxes & similar products 38 0.0 0 0 100.0 2715 Bituminous mixtures from..natural asphalt, natural & petroleum bitumen, mineral tar, 35 0.0 0 0 100.0 2701 Coal; briquettes, ovoids & similar solid fuels manufactured from coal 4 0.0 0 0 0.0 2714 Bitumen & asphalt, natural; shale & tar sands; asphaltites & asphaltic rocks 0 0.0 0 0 0.0 2704 Coke & semicoke of..coal, lignite, peat; retort carbon 0 0.0 0 0 0.0 2703 Peat (incl peat litter), w/n agglomerated 0 0.0 0 0 0.0 2707 Oils & other products of the distillation of high temp coal tar etc 0 0.0 0 0 0.0 2702 Lignite w/n agglomerated, excl jet 0 0.0 0 0 0.0 2705 Coal gas,water gas,producer gas,other than petroleum gases 0 0.0 0 0 0.0

SEBC/SSP 113

Leading partners

World 4,405,62

3 0.3 3

Italy 1,882,11

0 0.1 2

France 900,436 0.0 0.0 -24.0 2

United Kingdom 441,096 0.0 1

Areas n.e.s. 425,652 0.0 1

Spain 302,367 0.0 12.0 -11.0 1

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - HS 30 Pharmaceutical products (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(% p

.a.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

3000 All industries in sector 30 62,090 0.0 93.0 75.0 12 21 54.6

3004 Medicament mixtures (not 3002, 3005, 3006), put in dosage 47,494 0.0 98.0 80.0 5 17 61.2 3003 Medicament mixtures (not 3002, 3005, 3006) not in dosage 12,062 0.2 72.0 58.0 5 10 75.1 3005 Dressings packaged for medical use 2,342 0.1 2 4 82.3 3006 Pharmaceutical goods, specified sterile products sutures, laminaria, blood-grouping 111 0.0 0 0 77.2 3001 Glands & extracts, secretions for organotherapeutic uses; heparin & its salts; other 70 0.0 0 0 100.0 3002 Human & animal blood; antisera, vaccines, toxins, micro-organism cultures 8 0.0 0 0 100.0

Leading partners

World 62,090 0.0 93.0 12

SEBC/SSP 114

Yemen 18,403 0.0 78.0 9

Sudan 8,085 0.0 92.0 7 United Arab Emirates 7,400 0.0 8

Iraq 7,369 0.0 4

Algeria 6,823 0.0 35.0 4

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports -HS 33 Essential oils, perfumes, cosmetics, toiletries (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

3300 All industries in sector 33 30,113 0.0 77.0 62.0 16 20 52.3 3304 Beauty, make-up & skin-care preparations; sunscreens, manicure or pedicure 17,232 0.1 83.0 66.0 5 16 49.2 3305 Hair preparations 10,899 0.1 67.0 53.0 4 11 59.3 3307 Personal toilet preparations shaving preparations, deodorants etc. 1,396 0.0 81.0 69.0 4 3 70.9 3303 Perfumes and toilet waters 302 0.0 1 1 83.7 3302 Odoriferous mixtures as raw materials for industry 129 0.0 1 1 100.0 3306 Oral & dental hygiene preparations 117 0.0 1 0 88.3 3301 Essential oils; resinoids; terpenic by-products etc 38 0.0 0 0 100.0

Leading partners

World 30,113 0.0 77.0 16

Saudi Arabia 6,316 0.0 41.0 8

Jordan 5,856 0.0 8 Libyan Arab Jamahiriya 3,550 0.0 33.0 5

Iraq 3,248 0.0 2

Lebanon 1,968 0.0 4

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

SEBC/SSP 115

Syria's Exports -34 Soaps, lubricants, waxes, candles, modelling pastes (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

00

0)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

3400 All industries in sector 34 271,541 0.8 149.0 136.0 13 29 75.1

3402 Organic surface-active agents, washing & clean preparations, nes 243,258 1.3 174.0 161.0 4 22 79.4 3401 Soap; organic surface-active preparations for soap use 21,488 0.5 78.0 67.0 3 13 66.2 3405 Polishes & creams for footwear,furn,floors,glass,metal etc 5,461 0.4 76.0 63.0 3 6 72.5 3403 Lubricating preparations, antirust or for treating textiles, leather 809 0.0 2 2 97.0 3404 Artificial waxes & prepared waxes 438 0.0 1 2 99.8 3406 Candles, tapers & the like 47 0.0 0 0 100.0 3407 Modeling pastes including those for children; dental wax 39 0.0 0 0 100.0

Leading partners

World 271,541 0.8 149.0 13

Iraq 104,248 0.3 7

Lebanon 55,266 0.2 106.0 85.0 9

Senegal 44,413 0.1 2

Angola 18,030 0.1 1

Morocco 9,768 0.0 80.0 75.0 2

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

SEBC/SSP 116

Syria's Exports - 39 Plastics and articles thereof (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

v

olu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

3900 All industries in sector 39 222,451 0.1 120.0 102.0 46 40 48.8

3921 Plates, sheets, film, foil and strip, of plastics, nes 83,721 0.5 106.0 30.0 90.0 3 18 78.4 3924 Tableware, kitchenware, toiletery articles, of plastic 40,015 0.4 131.0 116.0 2 25 58.1 3923 Plastic packing goods or closures stoppers, lids, caps, closures, plastic containers 35,841 0.1 469.0 456.0 7 23 64.9 3926 Article of plastic nes. 18,901 0.0 68.0 57.0 4 15 59.3 3920 Other plates, sheets, film, foil, tape, strip of plastics etc. 12,034 0.0 6 9 69.8 3919 Self-adhesive plates, sheets, film etc of plastic w/n in rolls 8,105 0.1 2 7 80.4 3901 Polymers of ethylene, in primary forms 8,083 0.0 3 6 89.0 3907 Polyacetal,o polyether,epoxide resin,polycarbonate,etc,in primary form 4,498 0.0 51.0 31.0 2 7 73.0 3925 Builders' ware of plastics, nes 4,356 0.1 4 6 78.5 3917 Tubes, pipes & hoses & fittings therefor of plastics 4,319 0.0 6 6 79.4 3904 Polymers of vinyl chloride/other halogenated olefins, in primary forms 511 0.0 2 2 86.3 3909 Amino-resins, pheonolic resins and polyurethanes, in primary forms 478 0.0 1 1 74.6 3918 Floor, wall & ceiling coverings in rolls or tiles, of plastics, nes 438 0.0 2 2 90.7 3902 Polymers of propylene or of other olefins, in primary forms 273 0.0 1 0 73.3 3922 Baths,shower-baths,wash- 191 0.0 0 0 72.4

SEBC/SSP 117

basins,bidet etc of plastic

3905 Polymers of vinyl acetate/o vinyl esters&o vinyl poly,in primary forms 148 0.0 5.0 -8.0 1 0 100.0 3915 Waste, parings and scrap, of plastics 105 0.0 0 0 100.0 3906 Acrylic polymers in primary forms 104 0.0 0 0 100.0 3908 Polyamides in primary forms 97 0.0 0 0 100.0 3903 Polymers of styrene, in primary forms 87 0.0 0 0 100.0 3912 Cellulose & its chemical derivatives nes in primary forms 67 0.0 0 0 100.0 3910 Silicones in primary forms 38 0.0 0 0 100.0 3916 Monofilament with cross-section exceeding 1mm 32 0.0 0 0 100.0 3914 Ion-exchangers basd on polymers of nos 39.01 to 39.13,in primary forms 4 0.0 0 0 0.0 3911 Petroleum resins,polyterpenes,polysulphides etc nes,in primary forms 2 0.0 0 0 0.0

Leading partners

World 222,451 0.1 120.0 46

Saudi Arabia 59,471 0.0 78.0 31.0 12

Lebanon 26,271 0.0 187.0 22 United Arab Emirates 22,787 0.0 173.0 9

Jordan 20,309 0.0 162.0 19

Iraq 18,622 0.0 15

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 41 Raw hides and skins (other than furskins) and leather (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(% p

.a.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

4100 All industries in sector 41 70,253 0.2 8 14 89.0

SEBC/SSP 118

4105 Sheep/lamb skin leather,other than leather of hd no4108/4109 64,937 4.8 34.0 2 11 92.8 4106 Goat/kid skin leather, other than leather of hd no 41.08/41.09 3,264 0.4 1 5 81.2 4104 Leather of bovine/equine animal, other than leather of hd 4108/4109 1,544 0.0 3 2 95.5 4102 Raw skins of sheep or lambs 248 0.0 1 1 89.9 4101 Raw hides&skins of bovine/equine animals 137 0.0 1 0 90.1 4111 Composition leather, in slabs, sheets or strips 63 0.0 0 0 100.0 4110 Parings and other waste of leather; leather dust, powder and flour 36 0.0 0 0 100.0 4103 Raw hides&skins nes 24 0.0 0 0 100.0 4107 Leather of other animals, o/t leather of hd no 41.08/41.09 0 0.0 0 0 0.0 4109 Patent leather and patent laminated leather; metallised leather 0 0.0 0 0 0.0

Leading partners

World 70,253 0.2 8

Italy 55,531 0.2 5 Korea, Republic of 3,138 0.0 2

Turkey 1,843 0.0 2

Egypt 1,834 0.0 2 United Arab Emirates 1,408 0.0 2

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - HS 42 Articles of leather, animal gut, harnesses and travel goods (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

4200 All industries in sector 42 12,931 0.0 36.0 25.0 12 19 50.3

4202 Trunks,suit-cases,camera cases,handbags etc,of 10,089 0.0 8 16 56.1

SEBC/SSP 119

leather,plas,tex etc

4203 Articles of apparel&clothing access, of leather or composition leather 2,319 0.0 3 6 63.3 4201 Saddlery and harness for any animal, of any material 422 0.1 1 1 95.1 4204 Articles of leather or composition leather for technical uses 42 0.0 0 0 100.0 4205 Articles of leather or composition leather, nes 40 0.0 0 0 100.0 4206 Articles of gut, of goldbeater's skins, of bladders or of tendons 19 0.0 0 0 100.0

Leading partners

World 12,931 0.0 36.0 12

Saudi Arabia 4,187 0.0 5

Lebanon 1,241 0.0 2 Libyan Arab Jamahiriya 1,041 0.0 31.0 2

Jordan 959 0.0 221.0 3

Iraq 935 0.0 2

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 52 Cotton (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(% p

.a.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

ma

rke

ts >

U

SD

100

.000

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

5200 All industries in sector 52 372,713 0.7 8.0 1.0 36 37 64.5

5201 Cotton, not carded or combed 184,549 1.7 1 22 65.9 5205 Cotton yarn (not sewing thread) 85% or more cotton, not retail 124,170 1.3 19.0 11.0 10 11 86.0 5212 Woven fabrics of cotton, nes 37,575 3.3 7 14 88.9 5209 Woven cotton fabrics, 85% or more cotton,weight over 200 g/m2 10,283 0.1 6 14 57.7

SEBC/SSP 120

5202 Cotton waste (including yarn waste and garnetted stock) 9,718 2.7 30.0 20.0 2 7 68.6 5208 Woven cotton fabrics, 85% or more cotton, weight less than 200 g/m2 5,201 0.0 90.0 84.0 5 4 89.4 5210 Woven cotton fabrics, less than 85% cotton, mxd with manmade fibers, weight 434 0.0 1 1 79.7 5211 Woven fab of cotton,less than 85%,mxd with man made fibre, weight >200g/m2 322 0.0 2 2 100.0 5207 Cotton yarn (not sewing thread) put up for retail sale 218 0.0 1 1 100.0 5206 Cotton yarn (not sewing thread) less than 85%cotton, not retail 182 0.0 -58.0 -69.0 1 1 100.0 5204 Cotton sewing thread 61 0.0 0 0 100.0 5203 Cotton, carded or combed 0 0.0 0 0 0.0

Leading partners

World 372,713 0.7 8.0 36

Egypt 106,604 0.2 75.0 15

Turkey 72,293 0.1 32.0 4.0 6

Italy 61,411 0.1 15

China 47,426 0.1 1

Portugal 10,378 0.0 5

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

SEBC/SSP 121

Syria's Exports - 54 Man made filaments (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

5400 All industries in sector 54 343,096 0.9 64.0 58.0 25 54 58.4

5407 Woven fabrics of synth. filam yarn (incl. hd no 54.04) 338,209 1.9 65.0 61.0 16 53 59.0 5402 Synthetic filam yarn, not put up 3,851 0.0 6 8 60.7 5408 Woven fabrics of synth. filam yarn (incl. hd no 54.05) 522 0.0 1 1 84.9 5405 Arti mono>/=67dtex,...,arti texmat wd 197 0.5 1 1 100.0 5404 Synth mono>/=67dtex,...,syn tex mat wd 172 0.0 1 1 100.0 5406 Man-made filament yarn, put up for retail sale 67 0.1 0 0 98.4 5401 Sewing thread of man-made filaments 46 0.0 0 0 100.0 5403 Artificial filam yarn, not put up 26 0.0 0 0 100.0

Leading partners

World 343,096 0.9 64.0 25

Algeria 93,132 0.2 74.0 9

Saudi Arabia 77,187 0.2 47.0 10

Jordan 30,010 0.1 6 Libyan Arab Jamahiriya 27,855 0.1 73.0 9

Sudan 13,712 0.0 10

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 58 Special woven or tufted fabric, lace, tapistry, etc (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

mar

ket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rket

s (

%)

5800 All industries in sector 58 92,378 0.8 50.0 41.0 27 32 55

SEBC/SSP 122

5804 Tulles & other net fabric not incl woven, knit/crocheted fabric; etc 31,117 2.1 4 13 71 5808 Braid in the piece; orn trim, in pce, o/t knitted/crochted 24,754 5.4 30.0 36.0 26.0 2 13 63 5810 Embroidery in the piece, in strips or in motifs 11,403 0.5 933.0 914.0 3 14 54 5807 Label, badge artwork of textile 8,409 0.7 142.0 137.0 2 5 93 5802 Terry towelling 5,090 2.5 3 9 67 5809 Woven fabrics of metallised yarn,for apparel,etc,nes 5,070 15.4 1 1 98 5801 Woven pile & chenille fabrics 4,401 0.1 59.0 51.0 8 8 67 5805 Hand-woven and needle-worked tapestries 1,331 4.7 1 3 99 5806 Narrow woven fabrics,o/t those of hd 5807 750 0.0 3 5 59 5803 Gauze, o/t narrow fabrics of hd 58.06 53 0.1 0 0 100 5811 Quiltd textile product in the piece other than embroidery of hd no5810 1 0.0 0 0 0

Leading partners

World 92,378 0.8 50.0 27

Saudi Arabia 27,498 0.2 13 Libyan Arab Jamahiriya 13,435 0.1 84.0 8

Lebanon 9,447 0.1 6

Kuwait 5,008 0.0 49.0 5

Iraq 4,874 0.0 2

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 61 Articles of apparel, accessories, knitted or crocheted (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

6100 All industries in sector 61 570,987 0.4 55.0 42.0 88 50 38.9

6108 Women's slips,panties,pyjamas, bathrobes 132,631 1.4 11 27 46.2

SEBC/SSP 123

etc, knitted/crocheted

6104 Women's suits,dresses,skirt etc&short, knit/croch 98,128 0.7 61.0 44.0 18 28 58.4 6109 T-shirts, singlets and other vests, knitted or crocheted 86,962 0.3 53.0 37.0 2 23 67.5 6106 Women's blouses & shirts, knitted or crocheted 67,607 0.9 144.0 134.0 3 21 77.0 6107 Men's underpants,pyjamas,bathrobes etc,knit/croch 66,632 1.8 76.0 68.0 9 18 81.7 6114 Garments, knitted or crocheted, nes 25,493 0.7 2 10 93.9 6110 Jerseys, pullovers, cardigans, etc, knitted or crocheted 24,382 0.1 4 22 52.4 6115 Panty hose, tights, stockings & other hosiery, knitted or crocheted 20,757 0.3 73.0 60.0 7 16 70.7 6103 Men's suits,jackets,trousers etc&shorts, knit/croch 15,447 0.2 55.0 36.0 12 17 60.5 6117 Clothing access nes,knitted/croch 15,445 0.7 55.0 46.0 52.0 4 12 62.0 6111 Babies' garments, knitted or crocheted 6,385 0.1 3 14 41.4 6101 Men's overcoats,capes,etc, knitted/crochetd,o/t of hd 61.03 4,300 0.4 3 4 91.2 6102 Women's overcoat,cape, etc,knitted/crochetd,o/t of hd 61.04 4,025 0.3 3 7 76.5 6112 Track suits, ski suits and swimwear, knitted or crocheted 1,397 0.0 3 2 92.3 6105 Men's shirts, knitted or crocheted 1,161 0.0 3 1 88.2 6116 Gloves, mittens and mitts, knitted or crocheted 191 0.0 1 1 100.0 6113 Garment,made up of knitted/crochetd fabric of hd no 59.03,06,07 45 0.0 0 0 100.0

Leading partners

World 570,987 0.4 55.0 88

Germany 83,345 0.1 73.0 16

SEBC/SSP 124

Turkey 71,186 0.0 18

Ukraine 67,390 0.0 18

Saudi Arabia 49,590 0.0 31.0 44.0 29

Algeria 34,718 0.0 73.0 92.0 11

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 62 Articles of apparel, accessories, not knitted or crotched (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

6200 All industries in sector 62 279,105 0.2 60.0 50.0 81 41 49.4

6204 Women's suits, jackets,dresses skirts etc&shorts 128,649 0.3 64.0 54.0 19 31 55.4 6203 Men's suits, jackets, trousers etc & shorts 56,371 0.2 68.0 59.0 11 25 48.0 6209 Babies' garments and clothing accessories 32,907 1.5 73.0 64.0 4 17 72.4 6214 Shawls, scarves, mufflers, mantillas, etc 11,919 0.6 49.0 39.0 3 14 54.0 6202 Women's overcoats,capes,wind-jackets etc o/t those of hd 62.04 6,813 0.1 37.0 22.0 4 8 81.0

6205 Men's shirts 6,670 0.1 140.0 134.0 4 9 70.4 6207 Men's singlets, briefs, pyjamas, bathrobes etc 6,602 0.5 6 8 83.2 6208 Women's singlets, slips, briefs, pyjamas, bathrobes etc 5,831 0.2 8 10 66.3 6201 Men's overcoats, capes, windjackets etc o/t those of hd 62.03 5,609 0.1 5 5 86.6 6217 Clothing accessories nes; o/t of hd 62.12 5,064 0.2 79.0 76.0 2 8 70.1 6210 Garment made up of fabric of heading no 56.02,56.03,59.03,59.06/59.07 3,508 0.1 103.0 89.0 3 7 69.2 6212 Brassieres, girdles, corsets, braces, suspenders etc & parts 2,911 0.0 4 7 63.3

SEBC/SSP 125

6211 Track suits, ski suits and swimwear; other garments 2,900 0.0 34.0 36.0 22.0 4 2 90.1 6206 Women's blouses & shirts 2,526 0.0 55.0 49.0 3 4 76.5 6215 Ties, bow ties and cravats 730 0.1 1 3 84.5 6213 Handkerchiefs 82 0.0 0 0 100.0 6216 Gloves, mittens and mitts 13 0.0 0 0 0.0

Leading partners

World 279,105 0.2 60.0 81

Saudi Arabia 74,885 0.0 44.0 71.0 35 Libyan Arab Jamahiriya 41,929 0.0 21

Jordan 21,161 0.0 63.0 25

Algeria 18,972 0.0 88.0 16

Egypt 18,200 0.0 614.0 34

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 63 Other made-up textile articles, sets, worn clothing, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

6300 All industries in sector 63 89,088 0.2465 88 74 35 35 40.7 6302 Bed, table, toilet and kitchen linens 43,259 0.3161 84 71 15 29 44.9 6305 Sacks and bags of a kind used for the packing of goods 19,838 0.825 89 76 3 11 64 6304 Furnishing articles nes, excluding 94.04 7,972 0.2385 3 9 73.8 6310 Rags,scrap twine,crodage,rope 7,667 1.868 92 84 2 4 94.8 6301 Blankets and travelling rugs 6,090 0.249 101 83 3 9 77.3 6303 Curtains, drapes & interior blinds 3,333 0.113 5 7 46.4 6306 Tents&camping goods, tarpaulins, sails for boats, etc 421 0.0177 1 1 71.2 6307 Made up articles nes, including dress patterns 243 0.0037 1 0 69 6308 Set consisting of woven fab&yarn for making up into 150 0.1747 1 1 100

SEBC/SSP 126

rugs,tapestrie etc

6309 Worn clothing and articles 115 0.0064 1 0 81.7

Leading partners

World 89,088 0.2 88.0 35

Saudi Arabia 19,949 0.1 81.0 17

Jordan 10,089 0.0 161.0 9

Lebanon 6,195 0.0 47.0 14.0 9 Libyan Arab Jamahiriya 5,908 0.0 168.0 6

Greece 5,254 0.0 170.0 8

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 64 Footwear, gaiters and the like, parts thereof (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

6400 All industries in sector 64 152,811 0.2 28.0 22.0 18.0 19 40 48

6405 Footwear, nes 85,764 3.1 30.0 30.0 13.0 3 28 48 6402 Footwear nes, outer soles and uppers of rubber or plastics 32,167 0.2 4 26 60 6403 Footwear, upper of leather 21,555 0.1 60.0 50.0 4 12 80 6406 Part of footwear;romovable in-soles,heel cushion etc;gaiter etc 7,931 0.1 129.0 123.0 4 13 70 6401 W/p foot,outer sole/upper of rbr/pla upper not fixd to sole nor assembld 2,889 0.4 227.0 215.0 1 3 92 6404 Footwear, upper of textile mat 2,505 0.0 3 7 50

Leading partners

World 152,811 0.2 28.0 22.0 19

Saudi Arabia 34,331 0.0 6 Libyan Arab Jamahiriya 20,783 0.0 22.0 35.0 9

Turkey 17,687 0.0 162.0 7

Sudan 12,668 0.0 5

SEBC/SSP 127

Ukraine 12,367 0.0 7

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 73 Iron and steel (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

kets

>

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

7300 All industries in sector 73 132,504 0.1 131.0 110.0 32 30 57.4

7326 Articles of iron or steel nes 38,257 0.1 98.0 80.0 3 25 57.1 7321 Iron & steel stoves,ranges,barbecues non-elec dom app. 34,473 0.5 157.0 139.0 5 14 91.1 7323 Iron & steel tables & household articles 29,200 0.5 125.0 117.0 6 16 64.4 7308 Structures (rods,angle, plates) of iron & steel nes 16,895 0.1 3 6 89.9 7310 Iron &steel tank,cask,drum can,boxes (cap 3,271 0.1 2 4 85.0 7306 Tubes, pipes and hollow profiles of iron or steel, nes 3,183 0.0 2 2 97.9 7304 Tubes, pipes and hollow profiles, seamless, or iron or steel 2,608 0.0 81.0 48.0 2 2 97.7 7313 Iron & steel wire,barbed,twisted hoop, etc ,for fencing 1,279 0.9 1 3 98.1 7309 Iron&steel reservoirs,tanks,vats (cap >300l) 1,093 0.0 1 1 100.0 7325 Cast articles of iron or steel nes 383 0.0 2 2 92.5 7303 Tubes, pipes and hollow profiles, of cast iron 252 0.0 1 0 73.9 7320 Springs and leaves for springs, of iron or steel 230 0.0 1 0 70.5 7307 Tube or pipe fittings, of iron or steel 219 0.0 1 1 85.3 7318 Iron & steel screws,bolts,nuts,coach-screws, etc 214 0.0 0 0 88.4 7322 Iron & steel radiators, air heaters&hot air distributors, etc. 205 0.0 1 0 83.9

SEBC/SSP 128

7311 Containers for compressed or liquefied gas, of iron or steel 198 0.0 1 1 100.0 7324 Sanitary ware & parts thereof, of iron or steel 173 0.0 0 0 65.0 7312 Iron & steel strandd wire,ropes,cables, etc,not electrically insulated 106 0.0 0 0 67.5 7314 Cloth, grill, netting&fencing, of iron & steel wire 92 0.0 0 0 97.5 7305 Tubes&pipe nes, ext diam >406.4mm,of iron &steel 82 0.0 0 0 95.7 7317 Nails, staples & sim art, iron & steel 32 0.0 0 0 100.0 7315 Chain and parts thereof, of iron or steel 28 0.0 0 0 100.0 7302 Rrail, crossing piece, iron/steel 22 0.0 0 0 100.0 7301 Sheet piling, etc of iron/steel 8 0.0 0 0 0.0

Leading partners

World 132,504 0.1 131.0 32

Iraq 39,302 0.0 13

Saudi Arabia 18,726 0.0 78.0 13

Jordan 17,930 0.0 13

Lebanon 17,101 0.0 94.0 8 Libyan Arab Jamahiriya 12,474 0.0 197.0 4

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 84 Boilers, machinery, nuclear reactors, etc (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

8400 All industries in sector 84 277,718 0.0 98.0 84.0 73 32 82.5

8418 Refrigerator, freezer, etc 250,176 0.8 280.0 264.0 10 22 89.5 8430 Moving/grading/scraping/boring machinery for earth 3,619 0.0 2 4 78.1

SEBC/SSP 129

8422 Dish washing machines; machinery for aerating bottles 2,367 0.0 3 6 52.0 8424 Mechanical appl. for proj/dispersing/spray;sand blastg mach,etc 2,180 0.0 4 5 80.4 8438 Machinery, nes, for the ind preparation or mfr of food or drink 1,537 0.0 13.0 -1.0 5 5 49.4 8415 Air conditioning machines, with motor-driven elements 1,534 0.0 3 3 88.8 8414 Air, vacuum pumps; hoods incorp a fan 1,264 0.0 4 4 65.2 8465 Mach-tool for wrkg wood/cork/bone/hard rubber 1,094 0.0 2 3 72.4 8462 Machine-tool for wrkg met by forging/ hammerg,etc 1,086 0.0 3 2 86.5 8474 Machinery for sorting/screening/washg;agglomeratg/shapg mineral product 809 0.0 20.0 -3.0 3 2 55.0 8479 Machines&mech appl having indiv functions, nes 748 0.0 2 2 57.5 8419 Machinery,plant/lab,involving a change of temp ex heating,cooking,etc 732 0.0 2 2 93.3 8464 Machine-tool for working stone/ceramic 694 0.0 -10.0 -22.0 -30.0 2 3 74.2 8421 Centrifuges, incl centrifugal dryers; filtering/purifying machinery 585 0.0 2 2 64.9 8455 Metal-rolling mills and rolls therefor 583 0.0 1 1 95.1 8434 Milking machines and dairy machinery 559 0.0 1 1 100.0 8417 Industrial/laboratory furnaces&ovens, incl incinerators, non-electric 548 0.0 16.0 -6.0 1 2 69.2 8451 Machinery nes,washing/clean/ironing/impreg tex yarn 536 0.0 1 2 77.2 8480 Moulding boxe for met foundry;mould 516 0.0 2 1 72.5

SEBC/SSP 130

base; etc

8477 Machinery for wrkg rbr/plas/ for the mfr of prod from these material 502 0.0 3 1 56.2 8408 Diesel or semi-diesel engines 437 0.0 1 1 95.8 8413 Pumps for liquids; liquid elevators 395 0.0 1 1 80.5 8443 Printing machinery; machines for uses ancillary to printing 303 0.0 12.0 -10.0 0.0 2 1 77.4 8412 Engines and motors, nes 293 0.0 1 1 100.0 8463 Machine-tools for wrkg metal, nes sintered met carbd 286 0.0 1 0 50.6 8431 Machinery part (hd 84.25 to 84.30) 276 0.0 1 1 93.5 8437 Machines for cleaning/sort seed,grain;machinery usd in the milling industry 270 0.0 1 0 65.9 8481 Tap,cock,valve for pipe,tank for the like,incl pressure reducing valve 260 0.0 1 1 100.0 8423 Weighing machinery (excl balances of a sensitivity of 5 cg or better) 227 0.0 0 0 66.5 8416 Furnace burners for liquid/pulv solid fuel/gas 215 0.0 0 0 95.0 8485 Machinery parts,not containing elec connectors,coils,nes 215 0.0 1 1 100.0 8447 Knittg machine,stitch-bonding&mach for mak gimpd y/lace,etc 200 0.0 1 1 84.3 8407 Engines, spark-ignition reciprocating or rotary int. combust. Piston 187 0.0 1 1 100.0 8429 Self-propelld bulldozer, angledozer, grader, excavator,etc 170 0.0 1 0 95.3 8458 Lathes for removing metal 158 0.0 1 1 100.0 8466 Machinery parts&acces (machinery of hd 84.56 to 84.65) 143 0.0 0 0 100.0

SEBC/SSP 131

8410 Hydraulic turbines, water wheels, and regulators thereof 131 0.0 1 1 100.0 8433 Harvesting/threshing machinery,hay mower,etc 120 0.0 0 0 100.0 8428 Lifting/handling/loading/unloadg machinery (excl. lift/escalator/conveyors),nes 117 0.0 0 0 77.9 8450 Household or laundry-type washing machines 115 0.0 0 0 91.0 8483 Transmission shafts&cranks, bearing housing; gearing; etc 115 0.0 1 0 100.0 8403 Central heating boilers (other than 84.02) 114 0.0 0 0 96.2 8409 Part for use solely/principally with the motor engines 108 0.0 1 1 100.0 8445 Machine for preparing textile fiber;spinning,twisting,windg mach 95 0.0 0 0 100.0 8448 Auxiliary machinery (dobbie/jacquard parts), etc 90 0.0 0 0 100.0 8473 Parts&acces of computers & office machines 89 0.0 0 0 100.0 8402 Steam or vapour generatg boiler; super-heated water boiler 84 0.0 0 0 100.0 8425 Pulley tackle & hoists other than skip hoists; winches&capstans; jacks 84 0.0 0 0 90.8 8426 Derricks; cranes; straddle carriers,&works trucks fitted with a crane 72 0.0 0 0 96.9 8436 Agricultural,hortic,forest,bee keeping machinery;poultry incubator etc 55 0.0 0 0 100.0 8411 Turbo-jets, turbo-propellers and other gas turbines 44 0.0 0 0 100.0 8461 Machine-tool for planing/shaping,etc sawing&other mach-tool for metal 43 0.0 0 0 100.0

8452 Sewing machine (o/t hd 42 0.0 0 0 100.0

SEBC/SSP 132

no 84.04); furniture spec designd for sew machine 8482 Ball or roller bearings 37 0.0 0 0 100.0 8435 Presses,crushers

machinery used in the mfr of wine/fruit juices 36 0.0 0 0 100.0 8460 Machine-tool for deburring/grinding,etc 34 0.0 0 0 100.0 8432 Agricultural, hortic, forest machinery for soil prep/cultivation 33 0.0 0 0 100.0 8453 Machinery for prepr,wrkg hide,leather/ reparing footwear 33 0.0 0 0 100.0 8405 Producer gas/water gas gen; acetylene gas generator 33 0.0 0 0 100.0 8439 Machinery for making pulp of fibrous cellulosic mat for mak/fin paper 32 0.0 0 0 100.0 8406 Steam turbines and other vapour turbines 30 0.0 0 0 100.0 8459 Machine-tool for drill/boring/milling,threading/tapping (o/t hd no84.58) 28 0.0 0 0 100.0 8468 Machy&app for solderg,brazg (o/t those of hd 85.15) 28 0.0 0 0 100.0 8420 Calandering/other rolling machinery 20 0.0 0 0 100.0 8471 Automatic data processing machines;optical reader, etc 18 0.0 0 0 0.0 8446 Weaving machines (loom) 15 0.0 0 0 0.0 8441 Machinery for mak up paper pulp, paper/paperbd, incl cut machines, nes 14 0.0 0 0 0.0 8484 Gaskets & sim joints of met sheeting combined w/other material 13 0.0 0 0 100.0 8467 Tool for working in the hand,pneumatic/with self-containd non-elec motor 12 0.0 0 0 100.0 8457 Maching centre,unit const mach&multistation transfer mach for wrkg met 11 0.0 0 0 100.0

SEBC/SSP 133

8401 Fuel element for reactor;Nuclear reactor 5 0.0 0 0 100.0 8440 Book-binding machinery including book sewing machines 4 0.0 0 0 0.0 8427 Fork-lift trucks;other works trucks fitted with lifting/handling equipm 3 0.0 0 0 100.0 8442 Machinery,app&equip for type-setting;printing type,plates 3 0.0 0 0 100.0

Leading partners

World 277,718 0.0 98.0 73

Iraq 174,861 0.0 9

Jordan 30,793 0.0 188.0 15 Russian Federation 23,445 0.0 3

Saudi Arabia 14,243 0.0 34.0 13

Turkey 4,573 0.0 9

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - 85 Electrical, electronic equipment (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(% p

.a.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

ma

rke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

8500 All industries in sector 85 226,630 0.0 246.0 230.0 19 19 84.4

8544 Insulated wire/cable 218,925 0.3 5 15 86.8 8516 Electric instantaneous water heater,space htg; hair dryer 2,755 0.0 6 4 85.8 8509 Electro-mechanical domestic appliance,with self-containd electric motor 2,210 0.0 4 5 72.2 8524 Recorded tape, recorded for sound 515 0.0 1 2 91.5 8507 Electric accumulator 363 0.0 16.0 1.0 1 2 100.0 8505 Electro-magnets;permanent magnets;magnetic chucks;etc 349 0.0 1 1 100.0

SEBC/SSP 134

8504 Electric transformer,static converter (for example rectifiers) 329 0.0 26.0 11.0 0 0 78.7 8536 Electrical app for switchg (ex fuse,switche,etc) not exceedg 1000 volt 217 0.0 1 0 59.4 8514 Industrial/laboratory elec furnaces&ovens 148 0.0 0 0 87.6 8501 Electric motors and generators (excluding generating sets) 136 0.0 0 0 73.1 8523 Prepared unrecordd media for sound record (tapes) 119 0.0 0 0 99.2 8502 Electric generating sets and rotary converters 117 0.0 0 0 96.3 8515 Electric,laser/photon beam/plasma arc solderg with cut capabilitie,etc 84 0.0 0 0 100.0 8537 Board & panels, equipped with two/more switches, fuses 44 0.0 0 0 100.0 8525 Television camera, transmissn app for radio-telephony 37 0.0 0 0 100.0 8539 Electric filament or discharge lamps 33 0.0 0 0 100.0 8511 Electrical ignition/starting equip (spark plugs/starter motors) 32 0.0 0 0 100.0 8508 Electro-mechanical tool for working in the hand,with self-contd elec-motor 31 0.0 0 0 100.0 8535 Electrical app for switching (ex fuse,switche,etc) exceeding 1000 volt 30 0.0 0 0 100.0 8506 Primary cells and primary batteries 24 0.0 0 0 100.0 8517 Electric app for line telephony,incl curr line system 23 0.0 0 0 100.0 8522 Parts and accessories of video, magnetic recorder 22 0.0 0 0 100.0 8529 Part suitable for use solely/princ with 21 0.0 0 0 0.0

SEBC/SSP 135

televisions, recpt app

8521 Video recording or reproducing apparatus 20 0.0 0 0 100.0 8538 Part suitable for use solely/princ with boards, panels, fuses, switches 12 0.0 0 0 0.0 8510 Shavers and hair clippers, with selfcontained electric motor 11 0.0 0 0 0.0 8512 Electrical lighting/signalling equip,windscreen wipers,defrosters,etc 7 0.0 0 0 0.0 8543 Electrical mach&app having individual function, nes 6 0.0 0 0 100.0 8545 Carbon electrodes / brushes / lamp carbons 1 0.0 0 0 0.0

Leading partners

World 226,630 0.0 246.0 19

Kuwait 97,229 0.0 3

Turkey 49,109 0.0 2

Iraq 44,832 0.0 6

Jordan 14,847 0.0 10

Saudi Arabia 7,918 0.0 7

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Syria's Exports - HS 94 Furniture, lighting, signs, prefabricated buildings (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rket

s (%

)

9400 All industries in sector 94 60,001 0.0 118.0 105.0 26 38 48.2

9403 Other furniture and parts thereof 45,181 0.1 122.0 110.0 9 32 52.8 9405 Lamps & lighting fittings nes; signs, nameplates illuminated 6,982 0.0 91.0 79.0 6 13 54.8 9404 Mattress supports; mattresses,quilts, etc 5,299 0.1 5 14 41.8

SEBC/SSP 136

9406 Prefabricated buildings 1,087 0.0 43.0 24.0 1 2 72.8 9401 Seat (o/t dentists' & barbers' chairs, etc), ∂ thereof 846 0.0 4 2 66.1 9402 Med, surg, dental furniture (e.g. dentists' & barbers' chairs) 608 0.0 132.0 117.0 1 2 78.8

Leading partners

World 60,001 0.0 118.0 26

Iraq 14,349 0.0 7

Saudi Arabia 9,069 0.0 57.0 52.0 14

Cyprus 5,506 0.0 3

Lebanon 5,108 0.0 102.0 9

Jordan 3,670 0.0 6

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

SEBC/SSP 137

Appendix D Exports of Turkey, 2006

Turkey's Exports -07 Edible vegetables and certain roots and tubers (2006, US$ 000)

Industry E

xp

ort

s (U

S$

00

0)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

wo

rld

ex

po

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

mar

ket

s

> U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

Str

uct

ura

l P

erfo

rma

nc

e

0700 All industries in sector 07 643,302 1.7 19.0 4.0 6 29 65 37 Emerging 0713 Dried vegetables, shelled 237,716 5.6 20.0 -2.0 10 6 42 39 Emerging

0702 Tomatoes 164,578 2.9 24.0 11.0 11 1 29 72 Emerging 0709 Vegetables nes, fresh or chilled 72,616 0.9 18.0 5.0 6 5 26 55 Emerging 0712 Dried vegetables 49,808 2.9 20.0 17.0 7 2 17 67 Emerging 0710 Frozen vegetables 49,595 1.3 16.0 9.0 4 2 15 66 Emerging 0707 Cucumbers and gherkins, fresh or chilled 28,834 1.7 36.0 18.0 20 1 16 80 Emerging 0703 Onions, garlic and leeks, fresh or chilled 22,917 0.7 8.0 -12.0 -8 2 20 46 Snail 0706 Carrots, turnips and salad beetroot, fresh or chilled 7,173 0.7 21.0 5.0 5 2 8 73 Emerging

0701 Potatoes 3,850 0.1 12.0 -1 1 5 90 Snail 0711 Vegetables, provisionally preserved (unfit for immediate consumption) 3,366 0.7 2 4 91 0704 Cabbages and cauliflowers,fresh or chilled 1,485 0.1 11.0 5.0 1 2 3 82 Emerging 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled 1,115 0.1 9.0 -3.0 -4 2 3 85 Snail 0705 Lettuce and chicory, fresh or chilled 248 0.0 23.0 10 1 1 92 Emerging 0714 Manioc, arrowroot salem (yams) etc 0 0.0 0 0 0

Leading partners

World 643,302 1.7 19.0 4.0 29 Russian Federation 111,984 0.3 36.0 13.0 9

Germany 65,214 0.2 12.0 2.0 21

Iraq 60,262 0.2 7

SEBC/SSP 138

Saudi Arabia 27,603 0.1 6

United Kingdom 26,448 0.1 16.0 10.0 7

Exchange rates: US$ 1.00 = € 0.80

US$ 1.00 = SP 54.2

1

Turkey's Exports - 08 Edible Fruit and Nuts

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

Str

uc

tura

l P

erf

orm

an

ce

0800 All industries in sector 08

2,256,385 4.3 18.0 3.0 4.0 35 70 46.3 Emerging

0802 Nuts nes 909,888 12.2 22.0 -4.0 1.0 7 44 67.5 Star 0805 Citrus fruit, fresh or dried 438,933 6.0 15.0 4.0 6.0 4 36 56.5 Emerging 0806 Grapes, fresh or dried 365,260 7.1 18.0 5.0 6.0 2 47 49.4 Emerging

0813 Dried fruit 188,851 14.2 11.0 7.0 -4.0 5 45 42.5 Snail 0809 Apricots, cherries, peaches, nectarines, plums & sloes, fresh 150,144 4.8 24.0 19.0 11.0 4 18 71.4 Emerging 0804 Dates, figs,pineapples, mangoes, avocadoes, guavas 125,312 3.4 12.0 8.0 -7.0 2 40 48.1 Traditional 0811 Frozen fruits & nuts 25,886 1.1 2.0 -2.0 -16.0 3 10 63.5 Traditional 0810 Fruits nes, fresh 22,512 0.5 50.0 2.0 33.0 2 11 77.2 Star 0808 Apples, pears and quinces, fresh 16,334 0.3 1.0 -9.0 -11.0 2 19 55.2 Snail 0807 Melons (including watermelons) & papayas, fresh 6,878 0.3 13.0 -2.0 2 12 60.5 Snail 0812 Provisionally preserved fruits & nuts (unfit for immediate consumption) 5,871 3.5 35.0 39.0 1 1 100.0 0814 Citrus fruit and melon peel 516 1.3 25.0 21.0 20.0 1 2 100.0 Emerging 0801 Brazil nuts, cashew nuts & coconuts 2 0.0 -47.0 -58.0 0 0 0.0 Snail 0803 Bananas and plantains, fresh or dried 0 0.0 -42.0 -51.0 0 0 0.0 Snail

Leading partners

World 2,256,38 4.3 18.0 3.0 35

SEBC/SSP 139

5

Italy 458,971 0.9 42.0 15

Germany 325,674 0.6 9.0 -1.0 27 Russian Federation 259,067 0.5 30.0 9.0 18

United Kingdom 150,069 0.3 13.0 1.0 15

France 145,989 0.3 16.0 2.0 13

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.211

Turkey's Exports - 20 Vegetable, fruit, nut, etc, food preparations (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

Str

uct

ura

l P

erfo

rma

nc

e

2000 All industries in sector 20 816,430 2.3 13.0 1.0 -1 25 52 50 Snail 2008 Preserved fruits nes 322,856 4.5 12.0 -3.0 -1 5 39 53 Snail 2007 Jams,fruit jellies & marmalades 143,460 8.2 38.0 9.0 21 3 20 71 Star 2001 Cucumbers, gherkins and onions preserved by vinegar 134,435 11.4 12.0 7.0 0 2 29 65 Emerging 2005 Prepared or preserved vegetables nes (excl. frozen) 89,327 1.3 14.0 6.0 1 6 28 63 Emerging 2002 Tomatoes prepared or preserved 75,170 3.0 -4.0 -11.0 -12 2 28 53 Snail 2009 Fruit & vegetable juices, unfermented 50,804 0.5 9.0 -2.0 -5 5 13 85 Snail 2004 Prepared or preserved vegetables nes (incl. frozen) 235 0.0 -39.0 -8.0 -53 1 1 89 Snail 2006 Sugar preserved fruits and nuts 106 0.0 -31.0 -52 1 0 100 Traditional 2003 Mushrooms&truffles, prepared or preserved 37 0.0 134.0 125 0 0 100 Emerging

Leading partners

World 816,430 2.3 13.0 1.0 25

Germany 278,582 0.8 18.0 1.0 21

Netherlands 78,920 0.2 9.0 -1.0 10

United States of 54,044 0.2 23.0 16.0 10

SEBC/SSP 140

America

United Kingdom 52,026 0.1 6.0 1.0 13

France 47,469 0.1 12.0 -3.0 11

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.2

11

Turkey's Exports - 25 Salt, sulphur, earth, stone, plaster, lime and cement (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

Str

uc

tura

l P

erf

orm

an

ce

2500 All industries in sector 25 647,885 2.2 5.0 2.0 -9.0 27 48 63.4 Snail

2523 Cements, portland, aluminous, slag, supersulfate & similar hydraulic cements 250,241 2.9 -5.0 -9.0 -23.0 4 10 86.7 Traditional 2515 Marble, travertine, ecaussine etc, 219,500 17.7 40.0 31.0 25.0 3 22 78.4 Emerging 2529 Felspar; leucite; nepheline & nepheline syenite; flourspar 82,752 12.2 19.0 12.0 8.0 1 5 99.5 Emerging 2520 Gypsum; anhydrite; plasters 46,180 5.1 28.0 28.0 11.0 1 10 74.6 Star 2516 Granite, porphyry, basalt, sandstone & other monumental or building stone 10,696 0.7 7.0 -3.0 -7.0 2 8 83.1 Snail 2530 Mineral substances, nes 10,443 0.8 -3.0 9.0 -21.0 2 14 63.4 Traditional 2517 Pebbles, gravel, brocken/crushed stone; macadam of slag or dross 9,198 0.5 24.0 11.0 2 5 92.0 Emerging 2513 Pumice stone;emery;natural corundum & garnet &other natural abrasives 7,851 4.6 -4.0 16.0 -13.0 2 12 54.2 Snail

2506 Quartz 6,358 3.7 13.0 15.0 -4.0 2 3 100.0 Traditional

2501 Salt 1,248 0.1 -11.0 -5.0 -24.0 1 3 97.3 Snail

2508 Clay nes 1,028 0.1 -39.0 0.0 -50.0 1 2 95.1 Snail 2519 Magnesium carbonate; magnesia; magnesium oxide 891 0.1 -61.0 4.0 -68.0 2 1 100.0 Snail

SEBC/SSP 141

2522 Quicklime, slaked lime and hydraulic lime 738 0.1 1 1 97.0 2505 Natural sands of all kinds, except metal-bearing 398 0.0 -17.0 -15.0 -29.0 2 1 88.2 Snail 2511 Nat barium sulphate, barium carbonate & witherite 272 0.1 1 1 100.0

2514 Slate 35 0.0 143.0 123.0 0 0 100.0 Star 2507 Kaolin and other kaolinic clays 33 0.0 0 0 100.0

2509 Chalk 14 0.0 -55.0 -68.0 0 0 100.0 Snail 2521 Limestone flux; limestone & other calcareous stone 3 0.0 -61.0 -75.0 0 0 0.0 Snail 2526 Natural steatite, w/n roughly trimmed or merely cut etc; talc 2 0.0 -73.0 -85.0 0 0 100.0 Snail 2503 Sulphur other than sublimed, precipitated and colloidal 1 0.0 0 0 0.0

Leading partners

World 647,885 2.2 5.0 2.0 27

China 147,827 0.5 61.0 52.0 4

Iraq 141,051 0.5 8

Italy 122,048 0.4 5.0 -5.0 11 Syrian Arab Republic 48,547 0.2 47.0 15.0 7

Spain 42,237 0.1 6

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 39 Plastics and articles thereof (2006, in US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

har

e o

f to

tal

exp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00

.00

0

No

of

mar

ke

ts

> U

SD

1

00.0

00

Sh

are

of

top

3

mar

ke

ts (

%)

Str

uct

ura

l P

erfo

rma

nce

3900 All industries in sector 39

1,377,304 1.6 20.0 16.0 2.0 70 82 26.8 Star

3923 Plastic packing goods or closures stoppers, lids, caps, closures, 246,131 0.3 19.0 9.0 5.0 7 48 34.1 Emerging

SEBC/SSP 142

plastic containers

3917 Tubes, pipes & hoses & fittings therefor of plastics 232,616 0.3 34.0 27.0 16.0 9 47 46.6 Star 3916 Monofilament with cross-section exceeding 1mm 189,942 0.2 67.0 60.0 50.0 2 34 53.1 Star 3920 Other plates, sheets, film, foil, tape, strip of plastics etc. 175,975 0.2 2.0 7.0 -14.0 8 36 36.8 Snail 3926 Article of plastic nes. 116,624 0.1 22.0 10.0 10.0 5 60 36.3 Emerging 3925 Builders' ware of plastics, nes 115,866 0.1 35.0 22.0 18.0 4 39 36.9 Star 3924 Tableware, kitchenware, toiletery articles, of plastic 108,749 0.1 28.0 15.0 14.0 2 54 32.3 Emerging 3906 Acrylic polymers in primary forms 42,805 0.1 19.0 21.0 3.0 1 24 38.1 Emerging 3907 Polyacetal,o polyether,epoxide resin,polycarbonate,etc,in primary form 30,910 0.0 -12.0 6.0 -32.0 7 15 41.5 Traditional 3922 Baths,shower-baths,wash-basins,bidet etc of plastic 29,549 0.0 17.0 8.0 0.0 3 32 31.1 Star 3921 Plates, sheets, film, foil and strip, of plastics, nes 28,948 0.0 10.0 12.0 -5.0 4 23 45.6 Snail 3909 Amino-resins, pheonolic resins and polyurethanes, in primary forms 17,453 0.0 21.0 29.0 2.0 1 16 68.1 Star 3919 Self-adhesive plates, sheets, film etc of plastic w/n in rolls 11,089 0.0 23.0 11.0 6.0 2 19 37.4 Star 3918 Floor, wall & ceiling coverings in rolls or tiles, of plastics, nes 9,265 0.0 14.0 18.0 -2.0 2 12 55.5 Snail 3915 Waste, parings and scrap, of plastics 4,467 0.0 26.0 -6.0 1 4 93.8 Traditional 3910 Silicones in primary forms 4,166 0.0 10.0 0.0 -7.0 1 10 36.6 Traditional 3908 Polyamides in primary forms 2,710 0.0 -24.0 -19.0 -50.0 1 4 91.7 Traditional

SEBC/SSP 143

3902 Polymers of propylene or of other olefins, in primary forms 2,559 0.0 7.0 -18.0 2 4 91.1 Traditional 3912 Cellulose & its chemical derivatives nes in primary forms 2,453 0.0 -22.0 2.0 -33.0 2 6 71.3 Snail 3904 Polymers of vinyl chloride/other halogenated olefins, in primary forms 1,889 0.0 -9.0 22.0 -23.0 1 2 88.2 Snail 3905 Polymers of vinyl acetate/o vinyl esters&o vinyl poly,in primary forms 1,494 0.0 -30.0 -7.0 -43.0 2 5 78.9 Snail 3901 Polymers of ethylene, in primary forms 1,220 0.0 -36.0 1.0 -62.0 2 4 86.9 Traditional 3903 Polymers of styrene, in primary forms 392 0.0 -22.0 15.0 -39.0 1 1 100.0 Snail 3911 Petroleum resins, polyterpenes, polysulphides etc nes,in primary forms 27 0.0 -25.0 -41.0 0 0 100.0 Snail 3913 Natural polymers & modified natural polymers nes, in primary forms 4 0.0 -66.0 -77.0 0 0 0.0 Snail 3914 Ion-exchangers basd on polymers of nos 39.01 to 39.13,in primary forms 0 0.0 -71.0 -83.0 0 0 0.0 Snail

Leading partners

World 1,377,30

4 1.6 20.0 16.0 70

Russian Federation 144,867 10.5 26.0 14.0 39

Romania 119,269 8.7 40.0 30.0 43

Ukraine 105,528 7.7 35.0 33.0 27

Germany 85,579 6.2 20.0 15.0 24

United Kingdom 80,728 5.9 12.0 7.0 17

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

SEBC/SSP 144

Turkey's Exports - HS 42 Articles of leather, animal gut, harnesses, travel goods (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rket

s (%

)

Str

uc

tura

l P

erf

orm

an

ce

4200 All industries in sector 42 252,065 0.7 -5.0 -7.0 -16.0 16 47 54.1 Snail 4203 Articles of apparel&clothing access, of leather or composition leather 211,787 2.6 4 43 56.8 4202 Trunks,suit-cases,camera cases,handbags etc,of leather,plas,tex etc 37,727 0.1 -3.0 -1.0 -17.0 10 18 63.1 Snail 4205 Articles of leather or composition leather, nes 2,233 0.1 -22.0 -40.0 1 6 61.4 Traditional 4204 Articles of leather or composition leather for technical uses 300 0.3 53.0 1 1 100.0 4201 Saddlery and harness for any animal, of any material 19 0.0 -55.0 -68.0 0 0 100.0 Snail 4206 Articles of gut, of goldbeater's skins, of bladders or of tendons 0 0.0 0 0 0.0

Leading partners

World 252,065 0.7 -5.0 -7.0 16

Germany 72,572 0.2 12

France 33,115 0.1 0.0 -5.0 6 Russian Federation 30,718 0.1 9 United States of America 19,049 0.0 -6.0 -8.0 6

United Kingdom 18,251 0.0 4.0 -6.0 8

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

SEBC/SSP 145

Turkey's Exports - 57 Carpets and other textile floor coverings (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rket

s (%

)

Str

uc

tura

l P

erf

orm

an

ce

5700 All industries in sector 57 652,570 5.2 23.0 17.0 12.0 12 68 29.6 Emerging

5703 Carpets and other textile floor covering tufted 458,440 7.1 36.0 22.0 24.0 3 62 27.9 Emerging 5701 Carpets and other textile floor covering knotted 85,456 5.2 2.0 -6.0 1.0 2 18 85.9 Emerging 5702 Carpets&o tex floor covg, woven,not tufted/flocked 83,981 3.0 4.0 0.0 -6.0 6 50 41.3 Snail 5705 Carpets and other textile floor coverings, nes 24,693 2.5 84.0 81.0 67.0 1 11 89.5 Emerging 5704 Carpets&other textile floor covering of felt,nt tufted/flockd 0 0.0 0 0 0.0

Leading partners

World 652,570 5.2 23.0 17.0 12

Saudi Arabia 84,470 0.7 20.0 11.0 3 United States of America 62,360 0.5 27.0 26.0 8

Free Zones 46,604 0.4 13.0 0.0 4

Kazakhstan 42,513 0.3 42.0 26.0 5

Romania 34,328 0.3 29.0 13.0 3

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 60 Knitted or crocheted fabric (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(% p

.a.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

top

3

ex

po

rt

ma

rket

s (%

)

Str

uc

tura

l P

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orm

an

ce

6000 All industries in sector 60 607,034 2.8 23.0 20.0 15.0 12 48 51.1 Emerging

6002 Knitted or crocheted fabrics, nes 551,738 3.0 31.0 27.0 23.0 7 48 51.2 Emerging

SEBC/SSP 146

6001 Pile fabrics incl long pile fabrics&terry fabrics, knitted/crocheted 55,296 1.9 5 21 51.2

Leading partners

World 607,034 2.8 23.0 20.0 12

Italy 138,507 0.6 42.0 26.0 8 Russian Federation 95,127 0.4 51.0 53.0 11

Romania 76,672 0.4 46.0 43.0 10

Bulgaria 67,626 0.3 26.0 31.0 11

Serbia 30,141 0.1 5

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 61 Articles of apparel, accessories, knit or crochet (2006, USD 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

exp

ort

ed

pro

du

cts

>

US

D 1

00

.00

0

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

rke

ts (

%)

Str

uct

ura

l P

erfo

rma

nce

6100 All industries in sector 61

6,634,219 4.6 11.0 1.0 -2.0 93 80 56.4 Snail

6109 T-shirts, singlets and other vests, knitted or crocheted

2,850,156 9.3 18.0 6.0 2.0 2 73 55.0 Emerging

6110 Jerseys, pullovers, cardigans, etc, knitted or crocheted

1,110,712 2.8 1.0 -8.0 -10.0 4 56 58.5 Snail

6115 Panty hose, tights, stockings & other hosiery, knitted or crocheted 691,049 8.5 15.0 8.0 2.0 7 41 62.9 Emerging 6104 Women's suits,dresses,skirt etc&short, knit/croch 626,768 4.7 9.0 -1.0 -8.0 23 48 56.1 Traditional 6106 Women's blouses & shirts, knitted or crocheted 391,945 5.4 25.0 13.0 15.0 3 42 60.7 Emerging 6108 Women's slips,panties,pyjamas, bathrobes etc, knitted/crocheted 349,623 3.7 0.0 -8.0 -11.0 9 40 65.0 Snail 6105 Men's shirts, knitted or 111,788 1.8 3 33 51.4

SEBC/SSP 147

crocheted

6114 Garments, knitted or crocheted, nes 102,348 2.8 20.0 5.0 2.0 3 31 54.7 Star 6103 Men's suits,jackets,trousers etc&shorts, knit/croch 101,888 1.5 -1.0 -7.0 -21.0 9 35 51.6 Traditional 6107 Men's underpants,pyjamas,bathrobes etc,knit/croch 94,011 2.5 0.0 -8.0 -8.0 8 34 61.2 Snail 6111 Babies' garments, knitted or crocheted 72,901 1.5 3 29 51.5 6102 Women's overcoat,cape, etc,knitted/crochetd,o/t of hd 61.04 40,194 2.6 4.0 1.0 -15.0 4 15 64.1 Traditional 6112 Track suits, ski suits and swimwear, knitted or crocheted 36,572 1.0 1.0 -3.0 -11.0 5 21 65.2 Snail 6101 Men's overcoats,capes,etc, knitted/crochetd,o/t of hd 61.03 34,072 3.2 18.0 14.0 7.0 4 16 66.1 Emerging 6117 Clothing access nes,knitted/croch 19,450 0.9 8.0 4.0 5.0 4 17 66.3 Emerging 6116 Gloves, mittens and mitts, knitted or crocheted 705 0.0 1.0 -16.0 2 2 68.7 Snail 6113 Garment,made up of knitted/crochetd fabric of hd no 59.03,06,07 38 0.0 0 0 100.0

Leading partners

World 6,634,21

9 4.6 11.0 1.0 93

Germany 1,994,68

0 1.4 8.0 -1.0 79

United Kingdom 1,245,63

1 0.9 15.0 6.0 68

France 503,981 0.3 11.0 0.0 63

Netherlands 447,538 0.3 18.0 8.0 52

Italy 376,307 0.3 36.0 17.0 51

Exchange rates: US$ 1.00 = €

US$ 1.00 = SP

SEBC/SSP 148

Turkey's Exports - 62 Articles of apparel, accessories, not knitted or crocheted (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ket

s >

U

SD

100

.00

0

Sh

are

of

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3

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s (%

)

Str

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orm

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ce

6200 All industries in sector 62

4,291,808 2.7 7.0 -2.0 -3.0 98 77 47.7 Snail

6204 Women's suits, jackets,dresses skirts etc&shorts

2,062,963 4.1 9.0 -2.0 -2.0 24 65 52.0 Snail

6203 Men's suits, jackets, trousers etc & shorts

1,012,440 2.8 9.0 -3.0 0.0 15 61 43.4 Emerging

6205 Men's shirts 404,036 3.5 12.0 1.0 5.0 3 56 41.9 Emerging 6206 Women's blouses & shirts 326,872 3.5 7.0 -6.0 1.0 5 48 57.9 Emerging 6208 Women's singlets, slips, briefs, pyjamas, bathrobes etc 188,097 7.9 1.0 -5.0 -3.0 6 40 59.4 Snail 6212 Brassieres, girdles, corsets, braces, suspenders etc & parts 83,651 0.9 14.0 6.0 0.0 3 32 62.3 Snail 6207 Men's singlets, briefs, pyjamas, bathrobes etc 61,963 4.6 6 31 55.2 6202 Women's overcoats,capes,wind-jackets etc o/t those of hd 62.04 47,024 0.6 7 25 60.7 6201 Men's overcoats, capes, windjackets etc o/t those of hd 62.03 38,544 0.5 7 30 58.5 6211 Track suits, ski suits and swimwear; other garments 27,755 0.3 -5.0 -15.0 -17.0 8 22 65.7 Snail 6209 Babies' garments and clothing accessories 21,974 1.0 6.0 4.0 -3.0 3 18 68.0 Snail 6214 Shawls, scarves, mufflers, mantillas, etc 10,647 0.6 -15.0 -8.0 -26.0 5 18 40.1 Snail 6217 Clothing accessories nes; o/t of hd 62.12 3,515 0.1 10.0 10.0 7.0 2 9 54.5 Emerging 6210 Garment made up of fabric of heading no 56.02,56.03,59.03,59.06/59.07 1,032 0.0 1 1 99.7

SEBC/SSP 149

6215 Ties, bow ties and cravats 1,028 0.1 -3.0 0.0 -10.0 2 2 35.9 Snail 6216 Gloves, mittens and mitts 189 0.0 -12.0 -24.0 1 0 87.3 Snail 6213 Handkerchiefs 78 0.0 0.0 -5.0 0 0 83.1 Snail

Leading partners

World 4,291,80

8 2.7 7.0 -2.0 98

Germany 918,664 0.6 -1.0 -10.0 83

United Kingdom 811,984 0.5 10.0 1.0 64

Netherlands 317,554 0.2 14.0 1.0 51 United States of America 305,766 0.2 39

Spain 283,988 0.2 48.0 42.0 32

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 63 Other made-up textile articles, sets, worn clothing, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

mar

ke

ts (

%)

Str

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tura

l P

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orm

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ce

6300 All industries in sector 63

1,466,810 4.1 4.0 5.0 -10.0 41 61 54.1 Snail

6302 Bed, table, toilet and kitchen linens 985,474 7.2 11.0 9.0 -2.0 14 56 57.9 Snail 6305 Sacks and bags of a kind used for the packing of goods 238,026 9.9 7.0 4.0 -6.0 2 31 47.9 Snail 6303 Curtains, drapes & interior blinds 138,536 4.7 -2.0 -7.0 -22.0 5 31 71.0 Traditional 6304 Furnishing articles nes, excluding 94.04 45,571 1.4 -30.0 -5.0 -46.0 6 28 51.1 Snail 6301 Blankets and travelling rugs 32,010 1.3 -2.0 -20.0 4 14 89.3 Traditional 6307 Made up articles nes, including dress patterns 15,853 0.2 9.0 9.0 -6.0 3 22 45.7 Snail 6306 Tents&camping goods, tarpaulins, sails for boats, etc 5,176 0.2 -3.0 -21.0 4 6 81.8 Traditional 6310 Rags,scrap twine,crodage,rope 4,973 1.2 2 4 91.6 6308 Set consisting of woven fab&yarn 1,191 1.4 -29.0 -28.0 -35.0 1 3 85.9 Snail

SEBC/SSP 150

for making up into rugs,tapestrie etc 6309 Worn clothing and articles 0 0.0 0 0 0.0

Leading partners

World 1,466,81

0 4.1 4.0 5.0 41

Germany 396,855 1.1 7.0 6.0 27 United States of America 223,700 0.6 -5.0 1.0 15

United Kingdom 172,371 0.5 8.0 7.0 18

France 134,556 0.4 -5.0 3.0 19

Netherlands 66,435 0.2 6.0 4.0 16

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 68 Stone, plaster, cement, asbestos, mica, etc, & articles thereof (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

v

alu

e (

% p

.a.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

ma

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ts (

%)

Str

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ura

l P

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rma

nc

e

6800 All industries in sector 68 742,062 2.3 29.0 23.0 12.0 29 66 63.7 Star

6802 Workd monumental/building stone&art;mosaic cube,granules 709,891 7.7 32.0 24.0 15.0 8 63 66.6 Star 6809 Articles of plaster 9,119 0.6 9.0 32.0 -11.0 3 7 76.9 Traditional 6810 Articles of cement, concrete or artif. stone 7,155 0.2 10.0 -9.0 4 4 96.2 Traditional 6805 Abrasive pdr/grn, on a base of tex mat, paper/paperboard etc 5,724 0.2 4.0 19.0 -9.0 3 12 51.5 Snail 6807 Article of asphalt (eg petroleum bitumen/coal tar pitch) 5,307 0.3 14.0 24.0 0.0 2 7 63.0 Emerging 6806 Slag,rock min wool; expandd clay, etc 2,306 0.1 -13.0 5.0 -30.0 2 8 60.0 Traditional 6804 Mill/grind stones,grinding wheels,abrasives/ceramics 1,340 0.0 -24.0 -5.0 -37.0 4 4 61.3 Snail

SEBC/SSP 151

6801 Setts, curbstones and flagstones, of natural stone 435 0.1 51.0 35.0 1 2 95.6 Emerging 6813 Asbestos friction materials and articles nes 337 0.0 1 0 58.0 6815 Articles of stone or of other mineral substances, nes 171 0.0 -30.0 -54.0 0 0 96.4 Traditional 6808 Panel,board etc of veg fibre,straw etc,agglomeratd with cement, etc 101 0.0 -44.0 -56.0 1 0 100.0 Snail 6812 Fab'd asbestos fiber; mixed with a basis of ash 67 0.1 -54.0 0 0 86.4 6803 Worked slate and articles of slate 65 0.0 60.0 49.0 0 0 100.0 Emerging 6811 Articles of asbestos-cement, of cellulose fibre-cement 37 0.0 -58.0 -77.0 0 0 100.0 Traditional 6814 Worked mica and articles of mica, nes 4 0.0 0 0 100.0

Leading partners

World 742,062 2.3 29.0 23.0 29

United States of America 379,563 1.2 43.0 41.0 5

United Kingdom 60,086 0.2 60.0 62.0 5

Spain 33,247 0.1 32.0 15.0 3

Canada 24,541 0.1 76.0 69.0 2

Israel 21,419 0.1 1.0 -3.0 5

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 71 Pearls, precious stones, metals, coins, etc (2006, in US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

har

e o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

val

ue

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

shar

e in

w

orl

d e

xp

ort

s

(% p

.a.)

No

of

pro

du

cts

>

US

$ 1

00.

000

No

of

m

ark

ets

>

US

$ 1

00.

000

Sh

are

of

top

3

mar

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%)

Str

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7100 All industries in sector 71

1,565,479 0.7 26.0 5.0 8.0 8 61 60 Star

7113 Articles of jewellery & parts thereof

1,124,481 2.9 19.0 2.0 4.0 2 61 50 Emerging

7108 Gold unwrought or in semi-manuf 433,740 0.8 69.0 30.0 42.0 1 3 100 Star

SEBC/SSP 152

forms

7117 Imitation jewellery 4,011 0.1 20.0 3.0 2 9 51 Star 7114 Articles of goldsmith's/silversmith's wares&pts 3,220 0.2 3 4 87 7103 Precious & semi-precious stone,not strug, 14 0.0 -50.0 -61.0 0 0 100 Snail 7115 Articles of precious metal or metal clad with precious metal, nes 6 0.0 -45.0 -76.0 0 0 100 Traditional 7104 Syn/reconstr prec/semi-prec stones, not strg/mounted/set 4 0.0 -69.0 -75.0 0 0 0 Snail 7116 Articles of natural or cultured pearls, prec/semi prec stones 2 0.0 -37.0 -60.0 0 0 100 Traditional 7106 Silver,unwrght or in semi-manuf. form 0 0.0 -67.0 -96.0 0 0 0 Traditional 7102 Diamonds, not mounted or set 0 0.0 0 0 0 7105 Dust&powder of precious or semi-precious stones 0 0.0 0 0 0 7110 Platinum, unwrought or in semimanufactured forms 0 0.0 0 0 0 7112 Waste & scrap of precious metal 0 0.0 -91.0 -120.0 0 0 0 Traditional

7118 Coin 0 0.0 0 0 0

Leading partners

World 1,565,47

9 0.7 26.0 5.0 8

United Arab Emirates 365,829 0.2 51.0 29.0 3 United States of America 297,470 0.1 6.0 -6.0 4

Switzerland 274,803 0.1 55.0 3

Italy 67,179 0.0 28.0 13.0 4

Germany 62,896 0.0 18.0 0.0 4

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 72 Iron and steel (2006, US$ 000)

SEBC/SSP 153

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

exp

ort

m

ark

ets

(%

)

Str

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tura

l P

erf

orm

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ce

7200 All industries in sector 72

3,867,401 1.2 15.0 6.0 -12.0 58 47 51.8 Traditional

7214 Bars&rods of iron/non-al/s, nfw than forged, hr, hd,/hot-extruded

3,085,221 19.4 38.0 22.0 5.0 2 32 57.3 Star

7216 Angles, shapes and sections of iron or non-alloy steel 264,436 1.9 24.0 1.0 -4.0 12 32 40.9 Traditional 7209 Flat-rolld prod of iron/non-alloy steel wd>/=600mm,cr,not clad 153,972 0.9 5.0 7.0 -13.0 4 7 93.9 Traditional 7208 Flat-rolld products of iron/non-al/s wdth>/=600mm,hr,not clad 130,959 0.3 2.0 -29.0 13 9 97.5 Traditional 7210 Flat-rolled prod of iron or non-al/s wd>/=600mm,clad, plated or coated 79,648 0.2 -1.0 13.0 -21.0 3 8 78.8 Traditional 7207 Semi-finished products of iron or nonalloy steel 74,907 0.3 -39.0 -67.0 1 1 100.0 Traditional 7204 Ferrous waste and scrap; remelting scrap ingots or iron or steel 48,540 0.2 26.0 19.0 -11.0 4 3 100.0 Traditional 7228 Bars&rods,other alloy steel; hollow drill bars, etc. 8,626 0.1 -26.0 -13.0 -56.0 2 3 99.4 Traditional 7224 Alloy steel in ingots/other primary form nes 3,621 0.1 -25.0 -56.0 1 1 100.0 Traditional 7219 Flat-rolled products of stainless steel, of a width of 600mm or more 3,587 0.0 -14.0 7.0 -42.0 2 5 89.3 Traditional 7229 Wire of other alloy steel 3,016 0.2 -13.0 91.0 -34.0 1 3 100.0 Traditional 7217 Wire of iron or non-alloy steel 2,759 0.1 -32.0 0.0 -53.0 3 8 63.1 Traditional 7211 Flat-rolled prod of iron/non-al/s wd less than 600mm,not clad 2,438 0.0 2 3 96.8 7213 Bars & rods, hr, in irreg wound coils, of iron or non-alloy steel 2,220 0.0 -68.0 -2.0 -91.0 2 2 100.0 Traditional

SEBC/SSP 154

7220 Flat-rolled products of stainless steel, of a width of less than 600mm 1,810 0.0 10.0 14.0 -12.0 3 4 75.7 Traditional 7212 Flat-rolld prod of iron/non-al/s wd less than 600mm,clad 747 0.0 -40.0 -59.0 1 1 100.0 Traditional 7222 Bars & rods of stainless steel nes; angles, shapes 470 0.0 -3.0 -31.0 1 2 98.9 Traditional 7215 Bars & rods of iron or non-alloy steel nes 225 0.0 -43.0 -73.0 1 1 100.0 Traditional 7205 Granules and powders, of pig iron, spiegeleisen, iron or steel 95 0.0 -47.0 -66.0 0 0 100.0 Traditional 7202 Ferro-alloys 69 0.0 0 0 100.0 7201 Pig iron and spiegeleisen in pigs 15 0.0 -71.0 -106.0 0 0 100.0 Traditional 7226 Flat-rolld products of other alloy steel of a width of less than 600mm 8 0.0 -83.0 -104.0 0 0 0.0 Traditional 7223 Wire of stainless steel 6 0.0 -49.0 -71.0 0 0 100.0 Traditional 7218 Stainless steel in ingots/other primary forms 5 0.0 -30.0 -42.0 0 0 100.0 Snail 7225 Flat-rolled products of other alloy steel, of a width of 600mm or more 2 0.0 -93.0 -124.0 0 0 0.0 Traditional 7227 Bars&rods,hot-rolled,in irregularly wound coils,of other alloy steel 0 0.0 -33.0 -59.0 0 0 0.0 Traditional

Leading partners

World 3,867,40

1 1.2 15.0 6.0 58

United Arab Emirates

1,069,401 0.3 57.0 34.0 4

United States of America 653,435 0.2 21.0 11

Spain 282,315 0.1 21.0 19.0 8

Qatar 235,114 0.1 1,001.0 1

Portugal 171,866 0.1 40.0 18.0 8

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

SEBC/SSP 155

Turkey's Exports - 73 Articles of iron and steel (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

vo

lum

e (%

p

.a.)

Gro

wth

of

sh

are

in

w

orl

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xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

mar

ke

ts >

U

SD

100

.00

0

Sh

are

of

top

3

exp

ort

m

ark

ets

(%)

Str

uc

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l P

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ce

7300 All industries in sector 73

1,901,528 0.9 11.0 10.0 -10.0 73 80 30.0 Traditional

7306 Tubes, pipes and hollow profiles of iron or steel, nes 565,219 2.9 18.0 -2.0 -8.0 6 28 56.2 Traditional 7308 Structures (rods,angle, plates) of iron & steel nes 412,724 1.5 33.0 16.0 10.0 5 54 41.5 Star 7322 Iron & steel radiators, air heaters&hot air distributors, etc. 296,401 8.8 38.0 26.0 22.0 3 35 63.6 Emerging 7326 Articles of iron or steel nes 161,009 0.5 33.0 25.0 15.0 3 54 39.3 Star 7323 Iron & steel tables & household articles 123,766 1.9 8.0 -4.0 0.0 3 48 26.3 Snail 7321 Iron & steel stoves, ranges, barbecues & non-elec domestic appliances. 116,628 1.7 9.0 15.0 -9.0 5 53 32.1 Traditional 7318 Iron & steel screws,bolts,nuts,coach-screws, etc 61,135 0.3 16.0 4.0 -2.0 9 32 60.5 Traditional 7324 Sanitary ware & parts thereof, of iron or steel 51,627 2.3 20.0 21.0 4.0 4 33 54.3 Emerging 7325 Cast articles of iron or steel nes 28,525 0.4 -14.0 8.0 -33.0 2 10 87.9 Traditional 7307 Tube or pipe fittings, of iron or steel 21,705 0.2 -2.0 -1.0 -26.0 9 18 49.7 Traditional 7310 Iron &steel tank,cask,drum can,boxes (cap 10,974 0.2 0.0 18.0 -12.0 3 16 43.2 Snail 7320 Springs and leaves for springs, of iron or steel 10,248 0.2 -4.0 1.0 -20.0 3 14 62.1 Snail 7314 Cloth, grill, netting&fencing, of iron & steel wire 9,158 0.2 16.0 -4.0 3 2 97.2 Traditional 7309 Iron&steel reservoirs,tanks,vats (cap >300l) 9,119 0.3 16.0 -10.0 1 13 61.0 Traditional 7303 Tubes, pipes and hollow profiles, of cast iron 5,785 0.5 1 8 79.3

SEBC/SSP 156

7311 Containers for compressed or liquefied gas, of iron or steel 4,204 0.2 -28.0 -3.0 -52.0 1 7 60.2 Traditional 7304 Tubes, pipes and hollow profiles, seamless, or iron or steel 3,646 0.0 -2.0 -34.0 3 8 46.0 Traditional 7312 Iron & steel strandd wire,ropes,cables, etc,not electrically insulated 3,018 0.1 -51.0 -1.0 -70.0 2 7 70.7 Traditional 7317 Nails, staples & sim art, iron & steel 2,421 0.1 -6.0 -1.0 -24.0 1 9 51.5 Traditional 7315 Chain and parts thereof, of iron or steel 1,057 0.0 -34.0 -3.0 -52.0 1 5 54.6 Traditional 7301 Sheet piling, etc of iron/steel 1,020 0.1 58.0 35.0 1 2 97.9 Star 7313 Iron & steel wire,barbed,twisted hoop, etc ,for fencing 905 0.6 30.0 14.0 1 3 66.6 Emerging 7305 Tubes&pipe nes, ext diam >406.4mm,of iron &steel 807 0.0 1 2 80.1 7319 Iron & steel sewing/knitting needle& sim art for hand use 246 0.1 -23.0 -1.0 -35.0 1 1 89.1 Snail 7302 Rrail, crossing piece, iron/steel 175 0.0 -15.0 -31.0 1 0 90.3 Snail 7316 Anchors, grapnels and parts thereof, of iron or steel 7 0.0 0 0 100.0

Leading partners

World 1,901,52

8 0.9 11.0 10.0 73

United Kingdom 228,547 0.1 24.0 9.0 14

Algeria 181,088 0.1 62.0 18

Iraq 161,363 0.1 48

Germany 160,067 0.1 15.0 5.0 36

Romania 118,393 0.1 41.0 22.0 31

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

SEBC/SSP 157

Turkey's Exports - 76 Aluminium and articles thereof (2006, US$ 000)

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7600 All industries in sector 76 537,502 0.4 12.0 16.0 -8.0 22 55 43.4 Traditional

7604 Aluminum bars, rods and profiles 371,955 2.7 38.0 24.0 14.0 3 46 47.9 Star 7610 Aluminum structure nes∂ of structures 59,895 0.9 9.0 0.0 -6.0 2 26 47.4 Snail 7616 Articles of aluminum nes 53,339 0.5 31.0 8.0 15.0 2 33 57.4 Emerging 7606 Aluminum plates, sheets and strip, of a thickness exceeding 0.2mm 15,146 0.1 -35.0 -10.0 -54.0 4 10 76.1 Traditional 7615 Aluminum table, kitchen, household articles 14,286 0.5 2.0 15.0 -11.0 1 23 43.0 Snail 7614 Aluminum stranded wire,cables,plaited bands, not elec insulated 11,558 1.7 3.0 -20.0 2 2 100.0 Traditional 7607 Aluminum foil of a thicknes not exceeding 0.2mm 5,098 0.1 -38.0 -9.0 -53.0 2 6 74.4 Snail 7601 Unwrought alumimum 2,475 0.0 -17.0 -38.0 1 1 100.0 Traditional 7608 Aluminum tubes and pipes 1,832 0.1 3.0 -12.0 1 5 67.0 Snail 7609 Aluminum tube or pipe fittings 1,412 0.3 23.0 32.0 5.0 1 5 57.5 Star 7605 Aluminum wire 240 0.0 -27.0 -47.0 2 1 92.5 Traditional 7602 Aluminum waste and scrap 231 0.0 1 1 100.0 7611 Aluminum reservoirs,vats container (cap >300l) 20 0.0 -40.0 0 0 100.0 7612 Aluminum container (cap <= 300l) 14 0.0 0 0 100.0 7603 Aluminum powders and flakes 0 0.0 -73.0 -88.0 0 0 0.0 Snail 7613 Aluminum containers for compressed or liquefied gas 0 0.0 -66.0 -80.0 0 0 0.0 Snail

Leading partners

World 537,502 0.4 12.0 16.0 22

SEBC/SSP 158

Germany 132,166 0.1 20.0 16.0 9

Iraq 54,537 0.0 14

Bulgaria 46,487 0.0 78.0 75.0 9 Russian Federation 35,453 0.0 41.0 33.0 9

Romania 26,747 0.0 49.0 35.0 9

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 84 Boilers, machinery; nuclear reactors, etc (2006, US$ 000)

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8400 All industries in sector 84

2,071,276 0.1 -1.0 6.0 -15.0 303 90 33.0 Snail

8418 Refrigerator, freezer, etc 570,787 1.8 11.0 8.0 -6.0 10 53 56.6 Snail 8450 Household or laundry-type washing machines 292,518 2.5 18.0 34.0 0.0 4 22 74.3 Traditional 8409 Part for use solely/principally with the motor engines 85,325 0.2 -33.0 -12.0 -48.0 2 47 45.0 Snail 8431 Machinery part (hd 84.25 to 84.30) 76,745 0.1 -2.0 5.0 -21.0 7 33 48.4 Traditional 8413 Pumps for liquids; liquid elevators 75,354 0.2 4.0 5.0 -12.0 12 40 52.7 Snail 8421 Centrifuges, incl centrifugal dryers; filtering/purifying machinery 73,673 0.2 21.0 2.0 5.0 9 45 29.8 Emerging 8481 Tap,cock,valve for pipe,tank for the like,incl pressure reducing valve 70,357 0.1 -3.0 -4.0 -22.0 6 42 39.0 Traditional 8479 Machines&mech appl having indiv functions, nes 67,130 0.1 14.0 -2.0 7 46 27.6 Snail 8462 Machine-tool for wrkg met by forging/ hammerg,etc 48,203 0.6 -6.0 -2.0 -21.0 8 44 27.2 Snail 8480 Moulding boxe for met foundry;mould base; etc 47,675 0.4 23.0 15.0 7 27 48.2 Emerging

SEBC/SSP 159

8474 Machinery for sorting/screening/washg;agglomeratg/shapg mineral product 46,972 0.4 13.0 -10.0 6 21 47.7 Traditional 8422 Dish washing machines; machinery for aerating bottles 44,819 0.2 5.0 5.0 -9.0 6 35 49.9 Snail 8477 Machinery for wrkg rbr/plas/ for the mfr of prod from these material 43,000 0.2 24.0 12.0 6 24 47.1 Emerging 8414 Air, vacuum pumps; hoods incorp a fan 42,122 0.1 4.0 3.0 -11.0 8 32 45.2 Snail 8437 Machines for cleaning/sort seed,grain;machinery usd in the milling industry 39,000 3.3 0.0 -6.0 -8.0 3 20 59.1 Snail 8451 Machinery nes,washing/clean/ironing/impreg tex yarn 36,974 0.6 12.0 17.0 3.0 6 14 72.9 Emerging 8415 Air conditioning machines, with motor-driven elements 36,568 0.1 -2.0 -17.0 6 19 66.4 Snail 8465 Mach-tool for wrkg wood/cork/bone/hard rubber 35,135 0.5 35.0 13.0 23.0 8 27 53.3 Emerging 8419 Machinery,plant/lab,involving a change of temp ex heating,cooking,etc 34,573 0.1 -18.0 8.0 -36.0 8 25 58.3 Traditional 8483 Transmission shafts&cranks, bearing housing; gearing; etc 33,161 0.1 -8.0 -15.0 -25.0 7 33 55.0 Traditional 8471 Automatic data processing machines;optical reader, etc 27,338 0.0 1.0 -3.0 -12.0 9 16 68.0 Snail 8438 Machinery, nes, for the ind preparation or mfr of food or drink 18,212 0.2 9.0 -5.0 7 22 42.4 Snail 8411 Turbo-jets, turbo-propellers and other gas turbines 17,739 0.0 -33.0 -43.0 2 3 100.0 Snail 8445 Machine for preparing textile fiber;spinning,twisting,windg mach 16,581 0.5 35.0 27.0 8 5 95.8 Emerging

8473 Parts&acces of 14,416 0.0 13.0 4.0 2.0 1 13 70.0 Emerging

SEBC/SSP 160

computers & office machines

8428 Lifting/handling/loading/unloadg machinery (excl. lift/escalator/conveyors),nes 14,033 0.1 -9.0 34.0 -28.0 5 18 39.3 Traditional 8403 Central heating boilers (other than 84.02) 12,838 0.2 -14.0 13.0 -36.0 2 10 66.7 Traditional 8466 Machinery parts&acces (machinery of hd 84.56 to 84.65) 12,379 0.1 24.0 8.0 6 18 63.9 Emerging 8446 Weaving machines (loom) 8,621 0.5 58.0 54.0 3 6 80.7 Emerging 8452 Sewing machine (o/t hd no 84.04); furniture spec designd for sew machine 7,632 0.2 8.0 2.0 5 18 38.6 Emerging 8434 Milking machines and dairy machinery 7,460 0.5 40.0 27.0 3 10 66.2 Emerging 8424 Mechanical appl. for proj/dispersing/spray;sand blastg mach,etc 7,207 0.1 -6.0 -21.0 6 13 41.4 Snail 8447 Knittg machine,stitch-bonding&mach for mak gimpd y/lace,etc 7,074 0.2 0.0 -8.0 4 7 76.5 Snail 8448 Auxiliary machinery (dobbie/jacquard parts), etc 5,919 0.1 11.0 4.0 5 8 63.7 Emerging 8453 Machinery for prepr,wrkg hide,leather/ reparing footwear 5,783 0.7 11.0 3 7 83.6 8455 Metal-rolling mills and rolls therefor 5,628 0.1 -21.0 -45.0 3 4 95.1 Traditional 8433 Harvesting/threshing machinery,hay mower,etc 5,594 0.0 -8.0 3.0 -23.0 5 10 65.8 Snail 8412 Engines and motors, nes 5,580 0.1 11.0 -10.0 4 6 84.2 Traditional 8417 Industrial/laboratory furnaces&ovens, incl incinerators, non-electric 5,071 0.1 -12.0 -1.0 -33.0 4 11 60.4 Traditional 8464 Machine-tool for working stone/ceramic 4,625 0.1 12.0 -8.0 3 9 50.6 Traditional 8429 Self-propelld bulldozer, angledozer, grader, 4,551 0.0 -29.0 -54.0 5 9 64.8 Traditional

SEBC/SSP 161

excavator,etc

8482 Ball or roller bearings 4,522 0.0 -32.0 -1.0 -47.0 5 14 34.4 Snail 8432 Agricultural, hortic, forest machinery for soil prep/cultivation 4,415 0.1 -2.0 -1.0 -18.0 6 7 78.4 Snail 8484 Gaskets & sim joints of met sheeting combined w/other material 4,068 0.1 11.0 -2.0 -3.0 2 15 25.9 Snail 8485 Machinery parts,not containing elec connectors,coils,nes 3,592 0.0 -6.0 -20.0 1 10 39.6 Snail 8467 Tool for working in the hand,pneumatic/with self-containd non-elec motor 3,413 0.0 27.0 11.0 4 6 69.4 Emerging 8463 Machine-tools for wrkg metal, nes sintered met carbd 3,377 0.2 3 4 86.1 8461 Machine-tool for planing/shaping,etc sawing&other mach-tool for metal 3,343 0.1 4.0 6.0 -15.0 2 10 51.2 Traditional 8443 Printing machinery; machines for uses ancillary to printing 2,333 0.0 -23.0 -34.0 4 8 43.6 Snail 8468 Machy&app for solderg,brazg (o/t those of hd 85.15) 2,327 0.2 8.0 -7.0 3 7 64.6 Snail 8402 Steam or vapour generatg boiler; super-heated water boiler 2,167 0.1 -24.0 -36.0 3 8 50.7 Snail 8426 Derricks; cranes; straddle carriers,&works trucks fitted with a crane 2,123 0.0 -33.0 -61.0 2 4 82.5 Traditional 8416 Furnace burners for liquid/pulv solid fuel/gas 2,059 0.1 4.0 0.0 -12.0 3 4 81.9 Snail 8460 Machine-tool for deburring/grinding,etc 1,872 0.1 -11.0 9.0 -24.0 2 8 53.7 Snail 8475 Machine for assg elec/electrn lamp;mach for wrkg glassware 1,815 0.1 -7.0 -24.0 2 2 93.8 Traditional 8441 Machinery for mak up paper pulp, 1,576 0.0 -23.0 -33.0 3 3 84.0 Snail

SEBC/SSP 162

paper/paperbd, incl cut machines, nes 8425 Pulley tackle & hoists other than skip hoists; winches&capstans; jacks 1,161 0.0 -10.0 -28.0 4 4 54.2 Traditional 8459 Machine-tool for drill/boring/milling,threading/tapping (o/t hd no84.58) 1,101 0.0 -19.0 -33.0 2 2 84.9 Snail 8427 Fork-lift trucks;other works trucks fitted with lifting/handling equipm 1,006 0.0 -9.0 -29.0 2 6 56.5 Traditional 8423 Weighing machinery (excl balances of a sensitivity of 5 cg or better) 877 0.0 -20.0 -29.0 3 3 81.4 Snail 8436 Agricultural,hortic,forest,bee keeping machinery;poultry incubator etc 822 0.0 -37.0 -56.0 3 3 84.7 Traditional 8439 Machinery for making pulp of fibrous cellulosic mat for mak/fin paper 799 0.0 18.0 5.0 1 1 100.0 Emerging 8470 Calculatg mach;accountg mach,cash register,ticket-issuing 680 0.0 -19.0 -23.0 1 1 100.0 Snail 8472 Office machines, nes (e.g. hectograph/stencil duplicat) 654 0.0 1 2 59.9 8430 Moving/grading/scraping/boring machinery for earth 520 0.0 -43.0 -72.0 1 2 91.9 Traditional 8406 Steam turbines and other vapour turbines 520 0.0 37.0 29.0 1 1 100.0 Emerging 8458 Lathes for removing metal 436 0.0 2 2 88.1 8442 Machinery,app&equip for type-setting;printing type,plates 346 0.0 -32.0 -10.0 -39.0 2 2 98.8 Snail 8408 Diesel or semi-diesel engines 326 0.0 -53.0 -76.0 2 2 100.0 Traditional 8404 Auxiliary plant for boiler of hd 8402/03,condenser for steam power unit 323 0.0 1 1 86.4

SEBC/SSP 163

8405 Producer gas/water gas gen; acetylene gas generator 185 0.0 1 1 100.0 8454 Converter,ladle,ingot moulds&casting mach,of a kind usd metal foundrie 156 0.0 1 0 98.1 8420 Calandering/other rolling machinery 152 0.0 -21.0 -27.0 1 1 100.0 Snail 8456 Mach-tool for removal of matrl by laser,photon beam,plasma arc proces 89 0.0 -32.0 -58.0 0 0 100.0 Traditional 8410 Hydraulic turbines, water wheels, and regulators thereof 20 0.0 -23.0 0 0 100.0 8407 Engines, spark-ignition reciprocating or rotary int. combust. Piston 19 0.0 0 0 100.0 8435 Presses,crushers machinery used in the mfr of wine/fruit juices 9 0.0 0 0 100.0 8440 Book-binding machinery including book sewing machines 3 0.0 -68.0 -83.0 0 0 100.0 Snail 8469 Typewriters and word-processing machines 3 0.0 0 0 100.0

Leading partners

World 2,071,27

6 0.1 -1.0 6.0 303

Germany 293,512 0.0 -10.0 0.0 90

France 216,950 0.0 15.0 15.0 38

United Kingdom 173,718 0.0 3.0 6.0 45

Iraq 114,491 0.0 104 Russian Federation 107,063 0.0 28.0 8.0 103

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 85 Electrical and electronic equipment (2006, US$ 000)

SEBC/SSP 164

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8500 All industries in sector 85

2,727,973 0.2 -1.0 -4.0 -17.0 145 79 48.1 Snail

8528 Television receivers (incl video monitors & video projectors)

1,590,962 2.1 2.0 -4.0 -22.0 3 28 70.6 Traditional

8544 Insulated wire/cable 371,385 0.5 -7.0 -8.0 -25.0 10 37 45.7 Traditional 8516 Electric instantaneous water heater,space htg; hair dryer 152,628 0.6 -6.0 -11.0 -18.0 10 60 23.7 Snail 8536 Electrical app for switchg (ex fuse,switche,etc) not exceedg 1000 volt 138,621 0.2 15.0 17.0 -1.0 7 49 46.3 Snail 8537 Board & panels, equipped with two/more switches, fuses 116,618 0.5 31.0 13.0 2 35 44.4 Star 8502 Electric generating sets and rotary converters 84,328 0.6 25.0 1.0 4 26 65.7 Star 8504 Electric transformer,static converter (for example rectifiers) 81,806 0.1 -16.0 6.0 -31.0 11 24 84.6 Snail 8538 Part suitable for use solely/princ with boards, panels, fuses, switches 30,410 0.1 9.0 -2.0 -7.0 2 25 36.8 Snail 8515 Electric,laser/photon beam/plasma arc solderg with cut capabilitie,etc 22,484 0.2 28.0 11.0 6 19 55.0 Star 8512 Electrical lighting/signalling equip,windscreen wipers,defrosters,etc 21,219 0.2 16.0 21.0 3.0 3 23 49.4 Emerging 8529 Part suitable for use solely/princ with televisions, recpt app 18,629 0.0 4.0 4.0 -24.0 2 18 57.5 Traditional 8509 Electro-mechanical domestic appliance,with self-containd electric motor 16,432 0.1 -19.0 -2.0 -30.0 4 20 55.5 Snail

SEBC/SSP 165

8501 Electric motors and generators (excluding generating sets) 12,923 0.0 -14.0 -3.0 -27.0 13 14 60.0 Snail 8503 Parts suitable for use solely/princ with machines of hd no 85.01/85.02 10,689 0.1 -19.0 -11.0 -37.0 1 6 81.1 Traditional 8507 Electric accumulator 8,055 0.0 -34.0 5.0 -49.0 4 8 76.9 Snail 8542 Electronic integrated circuits and microassemblies 6,857 0.0 0.0 -14.0 3 7 86.5 Snail 8531 Electric sound/visual signallg app (e.g. bell/siren, fire alarms) 6,306 0.0 12.0 -5.0 -9.0 4 10 48.6 Traditional 8511 Electrical ignition/starting equip (spark plugs/starter motors) 5,796 0.0 -39.0 -3.0 -50.0 6 11 64.7 Snail 8524 Recorded tape, recorded for sound 5,436 0.0 -19.0 0.0 -26.0 4 7 78.0 Snail 8517 Electric app for line telephony,incl curr line system 5,405 0.0 4 11 61.4 8539 Electric filament or discharge lamps 3,868 0.0 -14.0 -5.0 -31.0 8 10 42.3 Traditional 8508 Electro-mechanical tool for working in the hand,with self-contd elec-motor 3,697 0.0 18.0 8.0 3.0 3 9 66.0 Emerging 8514 Industrial/laboratory elec furnaces&ovens 3,677 0.1 -5.0 -23.0 4 6 67.6 Traditional 8525 Television camera, transmissn app for radio-telephony 3,093 0.0 4 9 54.6 8543 Electrical mach&app having individual function, nes 2,884 0.0 -17.0 -2.0 -38.0 1 11 42.7 Traditional 8547 Insulating fitting for elec mach,app/equip (o/t insulator of hd no85.46) 1,497 0.0 2 5 71.4 8535 Electrical app for switching (ex fuse,switche,etc) exceeding 1000 volt 1,492 0.0 -38.0 0.0 -54.0 4 3 70.3 Snail 8518 Microphones&stand;loudspeaker;headphone/earphone;sound amplifier set 1,346 0.0 4.0 -9.0 4 5 54.9 Snail

SEBC/SSP 166

8506 Primary cells and primary batteries 567 0.0 -14.0 1.0 -22.0 2 1 96.3 Snail 8545 Carbon electrodes / brushes / lamp carbons 367 0.0 2 0 63.3 8523 Prepared unrecordd media for sound record (tapes) 329 0.0 -45.0 -64.0 1 1 95.1 Traditional 8522 Parts and accessories of video, magnetic recorder 324 0.0 -49.0 -52.0 1 2 100.0 Snail 8510 Shavers and hair clippers, with selfcontained electric motor 239 0.0 5.0 -11.0 1 1 100.0 Snail 8521 Video recording or reproducing apparatus 198 0.0 -37.0 -44.0 1 0 99.0 Snail 8532 Electrical capacitors, fixed, variable or adjustable (pre-set) 157 0.0 1 1 94.9 8520 Magnetc tape recorder & sound rec app 146 0.0 1 0 100.0 8513 Portable electric lamp designd to functn by batt/magn. 131 0.0 -9.0 -22.0 1 0 79.5 Snail 8530 Electrical signallg/traffic control equip for rlwy/road (o/t hd 8608) 123 0.0 -28.0 -46.0 1 1 100.0 Traditional 8541 Diodes/transistors semiconductor devices; etc 117 0.0 0 0 78.6 8505 Electro-magnets;permanent magnets;magnetic chucks;etc 112 0.0 -23.0 -34.0 0 0 76.9 Snail 8533 Electrical resistor (incl rheostats),o/t heatg resistor 97 0.0 -35.0 -45.0 0 0 100.0 Snail 8527 Reception app for radio-telephony/radio-broadcastg 82 0.0 0 0 100.0 8519 Turntable (record-decks),record-player 61 0.0 36.0 16.0 0 0 100.0 Star 8546 Electrical insulators of any material 31 0.0 -63.0 -73.0 0 0 100.0 Snail 8540 Thermionic,cold cathode valves&tube (e.g. tv camera tubes) 29 0.0 0 0 100.0

SEBC/SSP 167

8526 Radar apparatus, radio navigational app&radio remote control apparatus 14 0.0 -67.0 -92.0 0 0 100.0 Traditional

Leading partners

World 2,727,97

3 0.2 -1.0 -4.0 145

Germany 545,374 0.0 1.0 -3.0 40

United Kingdom 525,249 0.0 6.0 -15.0 15

Iraq 241,804 0.0 63

France 190,399 0.0 -7.0 -13.0 26

Italy 179,535 0.0 4.0 3.0 20

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 87 Vehicles other than railway or tramway (2006, US$ 000)

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8700 All industries in sector 87

1,678,973 0.2 -15.0 4.0 -28.0 38 83 39.1 Snail

8708 Parts & access of motor vehicles 779,311 0.3 3.0 2.0 -11.0 15 82 54.0 Snail 8702 Public-transport type passenger motor vehicles 405,564 4.0 4.0 17.0 -10.0 1 23 58.9 Snail 8703 Cars (incl. station wagon) 401,036 0.1 -25.0 22.0 -37.0 4 12 68.4 Snail 8705 Special purosep motor vehicles (fire fight veh,crane lorry) 32,298 0.3 16.0 -7.0 3 11 61.7 Traditional 8716 Trailers&semi-trailers;other vehicles not mechanically propelled 31,715 0.2 2.0 -22.0 6 25 52.1 Traditional 8704 Trucks, motor vehicles for the transport of goods 20,335 0.0 -59.0 0.0 -71.0 3 9 73.3 Snail 8714 Parts and accessories of motorcycles & cycles 4,603 0.0 -13.0 6.0 -24.0 2 4 87.0 Snail 8712 Bicycles & other cycles, not motorised 1,868 0.0 -31.0 -2.0 -44.0 1 3 95.7 Snail 8707 Bodies for motor vehicles 1,164 0.0 -39.0

117.0 -60.0 1 2 99.5 Traditional

SEBC/SSP 168

8701 Tractors (other than tractors of heading no 87.09) 527 0.0 -70.0 -89.0 1 1 100.0 Traditional 8715 Baby carriages and parts thereof 415 0.0 -5.0 -8.0 -19.0 1 1 96.1 Snail 8713 Invalid carriages (wheelchairs), w/n motorised 100 0.0 -14.0 -24.0 0 0 100.0 Snail 8709 Work truck,self-propeled, for factorie/airport & parts 38 0.0 0 0 100.0

Leading partners

World 1,678,97

3 0.2 -15.0 4.0 38

Germany 327,221 0.0 -9.0 6.0 16

Romania 179,675 0.0 25.0 32.0 16

United Kingdom 150,162 0.0 -4.0 15.0 15

France 148,161 0.0 -25.0 -1.0 10

Greece 107,659 0.0 22.0 41.0 14

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

Turkey's Exports - 94 Furniture, lighting, signs, prefabricated buildings (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(% p

.a.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rke

ts >

U

SD

10

0.0

00

Sh

are

of

top

3

ex

po

rt

mar

ke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

9400 All industries in sector 94 713,228 0.5 19.0 7.0 6.0 33 62 30.8 Emerging 9403 Other furniture and parts thereof 292,958 0.5 28.0 11.0 16.0 9 56 28.7 Emerging 9401 Seats (oft dentists' & barbers' chairs, etc), & parts thereof 212,086 0.5 9.0 2.0 -4.0 9 52 32.3 Snail 9406 Prefabricated buildings 96,353 1.5 51.0 32.0 1 14 77.1 Star 9405 Lamps & lighting fittings nes; signs, nameplates illuminated 60,496 0.3 5.0 -3.0 -7.0 7 38 36.7 Snail 9404 Mattress supports; mattresses,quilts, etc 48,242 0.6 15.0 0.0 -5.0 5 33 33.4 Traditional 9402 Med, surg, dental furniture (e.g. dentists' & barbers' chairs) 3,093 0.2 6.0 -8.0 2 7 60.6 Snail

SEBC/SSP 169

Leading partners

World 713,228 0.5 19.0 7.0 33

Iraq 111,409 0.1 26

Germany 67,784 0.0 -1.0 3.0 26

France 40,817 0.0 21.0 7.0 20

Greece 39,964 0.0 32.0 19.0 24

Netherlands 37,369 0.0 13.0 3.0 18

Exchange rates: US$ 1.00 = € 0.797

US$ 1.00 = SP 54.21

1

SEBC/SSP 170

Appendix E Exports of Jordan, 2006

Jordan's Exports - HS 02 Meat and edible meat offal (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d

ex

po

rts

(%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d

exp

ort

s (

%

pa

)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

mar

kets

>

US

D 1

00

.00

0

Sh

are

of

top

3

mar

ke

ts

(%)

Str

uct

ura

l P

erfo

rma

nce

0200 All industries in sector 02 11,771 0.2 161.0 148.0 8 12 66.5 Emerging

0207 Meat&edible offal of poltry meat 4,831 0.1 2 8 59.6 0202 Meat of bovine animals, frozen 4,099 0.1 194.0 180.0 2 2 97.6 Emerging 0204 Meat of sheep or goats - fresh, chilled or frozen 2,788 0.1 94.0 80.0 4 4 95.2 Emerging 0208 Meat and edible meat offal nes 30 0.0 0 0 100.0 0201 Meat of bovine animals, fresh or chilled 24 0.0 0 0 100.0 0206 Edible offal of red meat 0 0.0 0 0 0.0 0203 Meat of swine, fresh, chilled or frozen 0 0.0 0 0 0.0

Leading partners

World 11,771 0.2 161.0 8

Iraq 4,268 36.3 232.0 4

Free Zones 2,120 18.0 81.0 1

Kuwait 1,443 12.3 1

Lebanon 944 8.0 2 United Arab Emirates 543 4.6 1

Exchange rates: US$

1.00 = € 0.797 US$ 1.00 = SP 54.211

Jordan's Exports - 07 Edible fruit, nuts, peel of citrus fruit, melons (2006, US$ 000)

SEBC/SSP 171

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

v

alu

e

(%

p

.a.)

Gro

wth

in

v

olu

me

(%

p.a

.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

ma

rke

ts

>

US

D 1

00.

000

Sh

are

of

top

3

ma

rket

s (%

)

Str

uc

tura

l P

erf

orm

an

ce

0700 All industries in sector 07 219,181 4.2 14.0 4.0 1.0 14 24 58.5 Emerging

0702 Tomatoes 102,314 2.0 15.0 8.0 2.0 1 13 61.9 Emerging 0707 Cucumbers and gherkins, fresh or chilled 41,687 0.8 17.0 2.0 0.0 1 13 65.2 Emerging 0709 Vegetables nes, fresh or chilled 40,965 0.8 20.0 3.0 8.0 3 18 53.9 Emerging 0704 Cabbages and cauliflowers,fresh or chilled 10,643 0.2 2 5 81.6 0705 Lettuce and chicory, fresh or chilled 7,507 0.1 7.0 -6.0 1 5 85.1 Snail 0708 Leguminous vegetables, shelled or unshelled, fresh or chilled 7,491 0.1 6.0 1.0 -7.0 2 7 61.6 Snail

0701 Potatoes 4,730 0.1 1 8 65.9 0703 Onions, garlic and leeks, fresh or chilled 3,518 0.1 31.0 15.0 2 3 94.3 Emerging 0713 Dried vegetables, shelled 217 0.0 1 1 95.8 0706 Carrots, turnips and salad beetroot, fresh or chilled 84 0.0 58.0 42.0 0 0 100.0 Emerging 0712 Dried vegetables 16 0.0 0 0 100.0 0710 Frozen vegetables 10 0.0 -41.0 -52.0 0 0 100.0 Snail

Leading partners

World 219,181 4.2 14.0 4.0 14

United Arab Emirates 49,966 22.8 7.0 0.0 10 Syrian Arab Republic 48,918 22.3 24.0 30.0 10

Iraq 29,408 13.4 7

Kuwait 21,907 10.0 9

Qatar 17,596 8.0 10.0 4.0 9

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

SEBC/SSP 172

Jordan's Exports - 15 Animal, vegetable fats and oils, cleavage products, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

vo

lum

e

(% p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

ma

rket

s

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

1500 All industries in sector 15 90,829 1.8 9 12 87.3

1516 Animal or veg fats, oils&fract, hydrogenated 67,314 1.3 1 2 99.7 1509 Olive oil and its fractions 10,615 0.2 71.0 52.0 1 8 79.7 Star 1515 Fixed vegetable fats&oils & their fractions 6,101 0.1 39.0 36.0 24.0 2 3 98.7 Emerging 1511 Palm oil & its fraction 3,723 0.1 61.0 44.0 2 4 93.9 Star 1517 Margarine 1,746 0.0 148.0 131.0 1 1 99.3 Emerging 1512 Safflower,sunflower/cotton-seed oil & fractions 1,201 0.0 2 2 100.0 1507 Soya-bean oil&its fractions 52 0.0 0 0 100.0 1522 Degras and residues 27 0.0 0 0 100.0 1520 Glycerol (glycerine) 26 0.0 0 0 100.0 1502 Bovine,sheep&goat fats 20 0.0 0 0 100.0 1513 Coconut (copra),palm kernel/babassu oil & their fractions 2 0.0 0 0 0.0

Leading partners

World 90,829 1.8 9

Iraq 71,773 79.0 6 Syrian Arab Republic 3,913 4.3 233.0 3

Spain 3,579 3.9 1

Israel 3,498 3.9 70.0 60.0 1 Palestine, Occupied Territory 2,029 2.2 61.0 2

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

SEBC/SSP 173

Jordan's Exports - 25 Salt, sulphur, earth, stone, plaster, lime and cement (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

vo

lum

e

(% p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

ma

rket

s

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

2500 All industries in sector 25 186,083 3.6 16 26 71.4

2510 Calcium and aluminum calcium phosphates, natural & phosphatic chalk 159,111 3.1 4.0 -2.0 1 12 82.7 Snail 2523 Cements, portland, aluminous, slag, supersulfate & similar hydraulic cements 6,740 0.1 2 3 100.0 2503 Sulphur other than sublimed, precipitated and colloidal 6,663 0.1 1 1 100.0 2517 Pebbles, gravel, brocken/crushed stone; macadam of slag or dross 3,156 0.1 67.0 54.0 3 3 94.3 Emerging

2501 Salt 3,008 0.1 1 2 85.6 2505 Natural sands of all kinds, except metal-bearing 2,627 0.1 26.0 14.0 2 5 81.7 Emerging 2515 Marble, travertine, ecaussine etc, 2,366 0.0 9.0 -6.0 2 7 52.8 Snail 2520 Gypsum; anhydrite; plasters 1,410 0.0 85.0 68.0 1 1 100.0 Star 2519 Magnesium carbonate; magnesia; magnesium oxide 265 0.0 1 1 100.0 2522 Quicklime, slaked lime and hydraulic lime 233 0.0 137.0 114.0 1 1 100.0 Star 2507 Kaolin and other kaolinic clays 207 0.0 1 1 100.0 2513 Pumice stone;emery;natural corundum & garnet &other natural abrasives 94 0.0 0 0 100.0

2526 Natural steatite, w/n 57 0.0 17.0 5.0 0 0 100.0 Emerging

SEBC/SSP 174

roughly trimmed or merely cut etc; talc 2530 Mineral substances, nes 48 0.0 0 0 100.0 2521 Limestone flux; limestone & other calcareous stone 42 0.0 0 0 100.0

2508 Clay nes 32 0.0 0 0 100.0 2516 Granite, porphyry, basalt, sandstone & other monumental or building stone 25 0.0 0.0 -14.0 0 0 100.0 Snail

Leading partners

World 186,083 3.6 16

Free Zones 9,940 5.3 5 Japan 8,857 4.8 20.0 1 Iran (Islamic Republic of) 8,609 4.6 6.0 1 Netherlands 8,281 4.5 -7.0 1 Syrian Arab Republic 5,632 3.0 2

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 28 Inorganic chemicals, precious metal compounds, isotopes (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 0

00)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

mar

ke

ts

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

2800 All industries in sector 28 211,191 4.1 18.0 -2.0 -1.0 28 50 60.6 Traditional

2809 Diphosphorus pentaoxide; phosphoric acid and polyphosphoric acids 99,612 1.9 3.0 -4.0 -12.0 1 4 98.9 Snail 2834 Nitrites; nitrates 32,464 0.6 1 27 51.2 2836 Carbonate;peroxocarbonate, commercial ammonium carbonate 16,172 0.3 11.0 5.0 -2.0 1 19 66.1 Snail

SEBC/SSP 175

2827 Chlorides, bromides, iodides & their oxides; chloride hydroxides 13,200 0.3 270.0 256.0 1 12 63.9 Emerging 2835 Phosphinates, phosphonates, phosphates & polyphosphates hypophosphites, phosphites 10,941 0.2 159.0 147.0 3 14 58.0 Emerging 2826 Fluorides;fluorosilicate,fluoraluminates&other complex fluorine salt 9,701 0.2 1 3 99.1 2839 Silicates; commercial alkali metal silicates 7,959 0.2 177.0 162.0 2 2 98.6 Emerging 2801 Fluorine, chlorine, bromine and iodine 6,022 0.1 65.0 49.0 3 5 93.3 Emerging 2815 Hydroxid,sodium (caustic soda)&caustic potash;peroxide of sodium & potassium 4,631 0.1 151.0 129.0 3 4 92.8 Star 2802 Sulphur, sublimed or precipitated; colloidal sulphur 2,676 0.1 1 1 100.0 2807 Sulphuric acid; oleum 2,354 0.0 27.0 11.0 1 2 100.0 Emerging 2833 Sulphates; alums; peroxosulphates (persulphates) 1,291 0.0 199.0 178.0 3 3 92.0 Star 2806 Hydrogen chloride (hydrochloric acid); chlorosulphuric acid 1,213 0.0 1 3 94.9 2828 Hypochlorites;commercial calcium hypochlorite;chlorites;hypobromides 813 0.0 77.0 70.0 2 4 84.1 Emerging 2823 Titanium oxides 742 0.0 55.0 1 1 94.2 2811 Inorganic acids, nes&other inorganic oxygen compounds of non-metals 715 0.0 63.0 49.0 2 2 94.5 Emerging 2804 Hydrogen, rare gases & other 189 0.0 30.0 8.0 0 0 97.9 Star

SEBC/SSP 176

non-metals

2808 Nitric acid; sulphonitric acids 138 0.0 -1.0 -15.0 1 0 85.5 Snail 2844 Radioactive chem elements&isotopes, their compounds, mixtures&residues 86 0.0 0 0 100.0 2832 Sulphites; thiosulphates 62 0.0 0 0 100.0 2847 Hydrogen peroxide 45 0.0 0 0 100.0 2831 Dithionites snd sulphoxylates 44 0.0 0 0 100.0 2842 Salts of inorganic acids or peroxoacids nes, excluding azides 39 0.0 6.0 -5.0 0 0 100.0 Snail 2821 Iron oxides & hydroxides 18 0.0 0 0 100.0 2843 Colloidal prec met; prec met compds nes; amalgams of precious metals 17 0.0 0 0 100.0 2814 Ammonia, anhydrous or in aqueous solution 12 0.0 0 0 100.0 2825 Hydrazine & hydroxylamine & their inorganic salts; other inorganic bases 9 0.0 0 0 0.0 2803 Carbon (carbon blacks & other forms of carbon, nes) 8 0.0 0 0 0.0 2829 Chlorates & perchlorates; bromates & perbromates; iodates & periodates 8 0.0 0 0 0.0 2816 Hydroxide & peroxide of magnesium;oxide,hydroxide &peroxid of strontium&barium 5 0.0 0 0 0.0 2851 Other inorganic compounds; liquid & compressed air 2 0.0 0 0 0.0 2817 Zinc oxide; zinc peroxide 1 0.0 0 0 0.0

SEBC/SSP 177

Leading partners

World 211,191 4.1 18.0 -2.0 28

Free Zones 24,858 11.8 9.0 -1.0 8 Saudi Arabia 20,317 9.6 32.0 3.0 8 Israel 11,540 5.5 279.0 5 Spain 9,918 4.7 1 United Arab Emirates 6,911 3.3 4

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 30 Pharmaceutical products (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

mar

kets

>

US

D 1

00

.00

0

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uct

ura

l P

erfo

rma

nce

3000 All industries in sector 30 313,242 6.1 10.0 6.0 -8.0 13 47 57.4 Traditional

3004 Medicament mixtures (not 3002, 3005, 3006), put in dosage 226,427 4.4 18.0 1.0 4 39 57.8 Star 3003 Medicament mixtures (not 3002, 3005, 3006) not in dosage 77,957 1.5 -4.0 -1.0 -18.0 3 27 60.8 Snail 3002 Human & animal blood; antisera, vaccines, toxins, micro-organism cultures 6,682 0.1 2 10 67.6 3006 Pharmaceutical goods, specified sterile products sutures, laminaria, blood-grouping 1,305 0.0 2 3 88.5 3005 Dressings packaged for medical use 749 0.0 2 3 81.5 3001 Glands & extracts, secretions for organotherapeutic uses; heparin & its salts; other 69 0.0 0 0 100.0

SEBC/SSP 178

Leading partners

World 313,242 6.1 10.0 6.0 13

Saudi Arabia 101,429 32.4 15.0 7

Algeria 55,107 17.6 13.0 3

Sudan 23,334 7.4 25.0 19.0 3

Lebanon 16,204 5.2 22.0 20.0 3 United Arab Emirates 13,825 4.4 18.0 10.0 4

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 39 Plastics and articles thereof (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

mar

kets

>

US

D 1

00

.00

0

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uct

ura

l P

erfo

rma

nce

3900 All industries in sector 39 112,223 2.2 22.0 5.0 56 27 64.3 Star

3923 Plastic packing goods or closures stoppers, lids, caps, closures, plastic containers 24,515 0.5 26.0 21.0 12.0 6 13 85.4 Emerging 3917 Tubes, pipes & hoses & fittings therefor of plastics 19,837 0.4 16.0 -3.0 8 20 73.0 Traditional 3907 Polyacetal,o polyether,epoxide resin,polycarbonate,etc,in primary form 16,808 0.3 25.0 6.0 4 9 69.8 Star 3901 Polymers of ethylene, in primary forms 13,295 0.3 58.0 33.0 3 7 90.8 Star 3926 Article of plastic nes. 9,476 0.2 25.0 13.0 4 12 69.4 Emerging 3920 Other plates, sheets, film, foil, tape, strip of plastics etc. 7,704 0.1 5.0 -1.0 -11.0 5 12 61.6 Snail 3924 Tableware, kitchenware, toiletery articles, of plastic 5,772 0.1 71.0 57.0 2 8 80.7 Emerging 3925 Builders' ware of plastics, nes 3,896 0.1 92.0 75.0 2 3 97.5 Star

SEBC/SSP 179

3904 Polymers of vinyl chloride/other halogenated olefins, in primary forms 2,846 0.1 17.0 3.0 3 3 95.0 Emerging 3903 Polymers of styrene, in primary forms 2,293 0.0 62.0 45.0 2 2 92.9 Emerging 3902 Polymers of propylene or of other olefins, in primary forms 1,459 0.0 2 3 83.5 3921 Plates, sheets, film, foil and strip, of plastics, nes 998 0.0 -7.0 -23.0 2 2 88.1 Snail 3905 Polymers of vinyl acetate/o vinyl esters&o vinyl poly,in primary forms 809 0.0 -8.0 -21.0 3 4 75.2 Snail 3918 Floor, wall & ceiling coverings in rolls or tiles, of plastics, nes 461 0.0 52.0 36.0 2 2 92.9 Emerging 3912 Cellulose & its chemical derivatives nes in primary forms 418 0.0 1 1 92.6 3919 Self-adhesive plates, sheets, film etc of plastic w/n in rolls 371 0.0 18.0 1.0 2 2 81.1 Star 3906 Acrylic polymers in primary forms 259 0.0 31.0 15.0 1 0 72.7 Emerging 3915 Waste, parings and scrap, of plastics 246 0.0 20.0 -11.0 1 1 99.5 Traditional 3911 Petroleum resins,polyterpenes,polysulphides etc nes,in primary forms 201 0.0 185.0 169.0 1 1 100.0 Emerging 3910 Silicones in primary forms 176 0.0 111.0 94.0 1 0 99.4 Star 3914 Ion-exchangers basd on polymers of nos 39.01 to 39.13,in primary forms 125 0.0 1 1 100.0 3922 Baths,shower-baths,wash-basins,bidet etc of plastic 108 0.0 71.0 54.0 0 0 100.0 Star 3913 Natural polymers & modified natural polymers nes, in primary 67 0.0 0 0 100.0

SEBC/SSP 180

forms

3916 Monofilament with cross-section exceeding 1mm 58 0.0 0 0 100.0 3909 Amino-resins, pheonolic resins and polyurethanes, in primary forms 16 0.0 -35.0 -53.0 0 0 100.0 Traditional 3908 Polyamides in primary forms 13 0.0 0 0 100.0

Leading partners

World 112,223 2.2 22.0 56

Iraq 56,162 50.1 25.0 12.0 30 Saudi Arabia 8,273 7.4 22.0 20 United Arab Emirates 7,768 6.9 44.0 11 Syrian Arab Republic 6,623 5.9 27.0 10 Israel 6,081 5.4 26.0 5

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 61 Articles of apparel, accessories, knitted or crocheted (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

v

alu

e

(%

p

.a.)

Gro

wth

in

v

olu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.000

No

of

ma

rket

s

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rket

s (%

)

Str

uc

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6100 All industries in sector 61 841,677 16.3 78.0 66.0 56 21 98.5 Emerging

6114 Garments, knitted or crocheted, nes 343,586 6.7 179.0 162.0 4 8 99.2 Star 6106 Women's blouses & shirts, knitted or crocheted 168,169 3.3 598.0 588.0 3 7 99.1 Emerging 6110 Jerseys, pullovers, cardigans, etc, knitted or crocheted 142,343 2.8 416.0 405.0 4 9 98.3 Emerging 6105 Men's shirts, knitted or crocheted 59,034 1.1 203.0 193.0 3 1 100.0 Emerging 6109 T-shirts, singlets and other vests, 34,561 0.7 286.0 270.0 2 2 99.7 Emerging

SEBC/SSP 181

knitted or crocheted

6103 Men's suits,jackets,trousers etc&shorts, knit/croch 30,848 0.6 82.0 63.0 10 6 97.5 Star 6107 Men's underpants,pyjamas,bathrobes etc,knit/croch 22,203 0.4 1 2 100.0 6104 Women's suits,dresses,skirt etc&short, knit/croch 16,152 0.3 157.0 140.0 15 3 99.1 Star 6113 Garment,made up of knitted/crochetd fabric of hd no 59.03,06,07 14,229 0.3 88.0 71.0 1 1 100.0 Emerging 6101 Men's overcoats,capes,etc, knitted/crochetd,o/t of hd 61.03 4,559 0.1 260.0 250.0 2 1 100.0 Emerging 6102 Women's overcoat,cape, etc,knitted/crochetd,o/t of hd 61.04 1,890 0.0 148.0 129.0 3 2 99.1 Star 6117 Clothing access nes,knitted/croch 1,708 0.0 3 4 76.4 6108 Women's slips,panties,pyjamas, bathrobes etc, knitted/crocheted 1,288 0.0 87.0 77.0 1 1 99.1 Emerging 6111 Babies' garments, knitted or crocheted 427 0.0 115.0 104.0 2 1 100.0 Emerging 6115 Panty hose, tights, stockings & other hosiery, knitted or crocheted 325 0.0 -25.0 -38.0 1 1 100.0 Snail 6112 Track suits, ski suits and swimwear, knitted or crocheted 282 0.0 1 1 100.0 6116 Gloves, mittens and mitts, knitted or crocheted 71 0.0 0 0 100.0

Leading partners

World 841,677 16.3 78.0 56

United States of America 769,895 91.5 128.0 49 Israel 51,138 6.1 16 Free Zones 8,268 1.0 7

SEBC/SSP 182

Canada 3,413 0.4 123.0 3 Spain 1,089 0.1 197.0 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

US$ 1.00 = SP 54.211

Jordan's Exports - 62 Articles of apparel, accessories, not knitted or crocheted (2006, US$ 000)

Industry

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6200 All industries in sector 62 413,842 8.0 -1.0 -11.0 59 23 96.2 Snail

6204 Women's suits, jackets,dresses skirts etc&shorts 306,428 5.9 90.0 79.0 17 11 99.0 Emerging 6203 Men's suits, jackets, trousers etc & shorts 54,646 1.1 14 7 98.2 6205 Men's shirts 21,791 0.4 4 4 98.8 6210 Garment made up of fabric of heading no 56.02,56.03,59.03,59.06/59.07 9,198 0.2 104.0 90.0 3 5 93.0 Emerging 6206 Women's blouses & shirts 9,150 0.2 141.0 135.0 3 2 99.3 Emerging 6211 Track suits, ski suits and swimwear; other garments 5,270 0.1 7 9 67.7 6202 Women's overcoats,capes,wind-jackets etc o/t those of hd 62.04 4,224 0.1 -4.0 -19.0 5 8 68.9 Snail 6217 Clothing accessories nes; o/t of hd 62.12 1,745 0.0 2 7 48.0 6209 Babies' garments and clothing accessories 317 0.0 -40.0 -49.0 1 1 100.0 Snail 6207 Men's singlets, briefs, pyjamas, bathrobes etc 266 0.0 1 1 100.0 6213 Handkerchiefs 253 0.0 1 1 100.0 6201 Men's overcoats, capes, windjackets etc o/t those of hd 182 0.0 -23.0 -34.0 1 0 84.3 Snail

SEBC/SSP 183

62.03

6214 Shawls, scarves, mufflers, mantillas, etc 123 0.0 7.0 -3.0 0 0 60.7 Snail 6215 Ties, bow ties and cravats 96 0.0 53.0 46.0 0 0 100.0 Emerging 6212 Brassieres, girdles, corsets, braces, suspenders etc & parts 67 0.0 87.0 73.0 0 0 100.0 Emerging 6208 Women's singlets, slips, briefs, pyjamas, bathrobes etc 52 0.0 -57.0 -61.0 0 0 100.0 Snail 6216 Gloves, mittens and mitts 32 0.0 0 0 100.0

Leading partners

World 413,842 8.0 -1.0 59

United States of America 389,240 94.1 0.0 42 Israel 5,917 1.4 13 Free Zones 3,048 0.7 1.0 9 Canada 2,734 0.7 21.0 6 Palestine, Occupied Territory 2,216 0.5 109.0 2

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 71 Pearls, precious stones, metals, coins, etc (2006, US$ 000)

Industry

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7100 All industries in sector 71 477,306 9.2 23.0 5.0 11 12 88.6 Star

7108 Gold unwrought or in semi-manuf forms 276,818 5.4 1 3 100.0 7113 Articles of jewellery&parts thereof 194,533 3.8 55.0 39.0 2 9 86.6 Emerging 7102 Diamonds, not mounted or set 1,380 0.0 1 1 100.0

SEBC/SSP 184

7103 Precious & semi-precious stone,not strug, 1,380 0.0 1 1 100.0 7111 Base metals, silver or gold, clad w plat, nfw than semi-manufactured 1,196 0.0 1 1 100.0 7117 Imitation jewellery 792 0.0 157.0 139.0 1 2 92.2 Star 7115 Articles of precious metal or metal clad with precious metal, nes 632 0.0 1 1 100.0 7112 Waste & scrap of precious metal 449 0.0 2 2 100.0 7106 Silver,unwrght or in semi-manuf. form 117 0.0 1 1 100.0 7114 Articles of goldsmith's/ silversmith's wares & pts 7 0.0 0 0 100.0

Leading partners

World 477,306 9.2 23.0 11

Switzerland 272,652 57.1 54.0 3 United States of America 98,451 20.6 97.0 1 United Arab Emirates 51,997 10.9 52.0 3 Israel 26,001 5.4 1.0 2 Italy 17,037 3.6 321.0 2

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 76 Aluminium and articles thereof (2006, US$ 000)

Industry

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7600 All industries in sector 76 129,608 2.5 41.0 21.0 15 26 54.9 Star

7612 Aluminum container (cap <= 300l) 77,889 1.5 69.0 53.0 54.0 1 9 84.1 Emerging 7604 Aluminum bars, rods and profiles 20,823 0.4 10.0 -14.0 3 13 71.1 Traditional

SEBC/SSP 185

7602 Aluminum waste and scrap 17,643 0.3 27.0 3.0 -3.0 1 7 57.8 Traditional 7601 Unwrought alumimum 8,602 0.2 2 2 99.5 7616 Articles of aluminum nes 1,625 0.0 42.0 26.0 1 5 62.2 Emerging 7606 Aluminum plates, sheets and strip, of a thickness exceeding 0.2mm 795 0.0 30.0 10.0 2 3 70.6 Star 7610 Aluminum structure nes∂ of structures 770 0.0 24.0 8.0 2 2 70.6 Emerging 7615 Aluminum table, kitchen, household articles 722 0.0 24.0 10.0 1 2 70.3 Emerging 7607 Aluminum foil of a thicknes not exceeding 0.2mm 709 0.0 2 2 80.7 7608 Aluminum tubes and pipes 19 0.0 -29.0 -44.0 0 0 100.0 Snail 7609 Aluminum tube or pipe fittings 11 0.0 0 0 100.0

Leading partners

World 129,608 2.5 41.0 15

Iraq 47,718 36.8 178.0 7

Free Zones 12,329 9.5 118.0 1

Japan 11,133 8.6 36.0 3 Syrian Arab Republic 10,351 8.0 25.0 15.0 3 Palestine, Occupied Territory 7,585 5.9 13.0 3

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 84 Boilers, machinery, nuclear reactors, etc (2006, US$ 000)

Industry

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(US

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US

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8400 All industries in sector 84 180,287 3.5 8.0 -6.0 143 39 61.1 Snail

SEBC/SSP 186

8415 Air conditioning machines, with motor-driven elements 38,324 0.7 17.0 1.0 6 14 57.5 Emerging 8418 Refrigerator, freezer, etc 24,303 0.5 24.0 7.0 9 16 61.7 Emerging 8450 Household or laundry-type washing machines 21,791 0.4 18.0 0.0 4 6 93.9 Star 8471 Automatic data processing machines;optical reader, etc 13,673 0.3 17.0 3.0 9 6 89.2 Emerging 8431 Machinery part (hd 84.25 to 84.30) 9,579 0.2 41.0 21.0 4 6 81.2 Star 8421 Centrifuges, incl centrifugal dryers; filtering/purifying machinery 7,468 0.1 31.0 15.0 5 6 85.2 Emerging 8429 Self-propelld bulldozer, angledozer, grader, excavator,etc 7,206 0.1 36.0 11.0 5 5 92.1 Star 8473 Parts&acces of computers & office machines 6,384 0.1 3.0 -8.0 5 6 84.3 Snail 8477 Machinery for wrkg rbr/plas/ for the mfr of prod from these material 4,477 0.1 46.0 34.0 5 8 75.8 Emerging 8452 Sewing machine (o/t hd no 84.04); furniture spec designd for sew machine 3,848 0.1 3 7 75.6 8422 Dish washing machines; machinery for aerating bottles 3,575 0.1 49.0 35.0 4 7 77.4 Emerging 8479 Machines&mech appl having indiv functions, nes 2,861 0.1 0.0 -16.0 4 6 59.9 Snail 8407 Engines, spark-ignition reciprocating or rotary int. combust. Piston 2,830 0.1 158.0 150.0 3 3 94.7 Emerging 8428 Lifting/handling/loading/unloadg machinery (excl. lift/escalator/co 2,705 0.1 3 4 79.3

SEBC/SSP 187

nveyors),nes

8474 Machinery for sorting/screening/washg;agglomeratg/shapg mineral product 2,587 0.1 27.0 4.0 5 4 80.3 Star 8413 Pumps for liquids; liquid elevators 2,156 0.0 5 3 87.2 8419 Machinery,plant/lab,involving a change of temp ex heating,cooking,etc 2,102 0.0 18.0 0.0 5 4 77.0 Traditional 8414 Air, vacuum pumps; hoods incorp a fan 1,979 0.0 5 2 93.7 8481 Tap,cock,valve for pipe,tank for the like,incl pressure reducing valve 1,911 0.0 3 3 96.6 8424 Mechanical appl. for proj/dispersing/spray;sand blastg mach,etc 1,731 0.0 9.0 -7.0 3 6 59.9 Snail 8443 Printing machinery; machines for uses ancillary to printing 1,713 0.0 7.0 -5.0 5 4 83.0 Snail 8427 Fork-lift trucks;other works trucks fitted with lifting/handling equipm 1,632 0.0 99.0 79.0 3 2 98.5 Star 8438 Machinery, nes, for the ind preparation or mfr of food or drink 1,448 0.0 4 4 64.2 8472 Office machines, nes (e.g. hectograph/stencil duplicat) 1,271 0.0 24.0 13.0 1 2 100.0 Emerging 8480 Moulding boxe for met foundry;mould base; etc 996 0.0 3 4 60.9 8417 Industrial/laboratory furnaces&ovens, incl incinerators, non-electric 918 0.0 2 4 86.8 8426 Derricks; cranes; straddle carriers,&works trucks fitted 806 0.0 33.0 5.0 3 2 91.8 Star

SEBC/SSP 188

with a crane

8462 Machine-tool for wrkg met by forging/ hammerg,etc 574 0.0 2 1 61.6 8465 Mach-tool for wrkg wood/cork/bone/hard rubber 571 0.0 67.0 55.0 1 3 89.8 Emerging 8409 Part for use solely/principally with the motor engines 555 0.0 2 2 93.4 8402 Steam or vapour generatg boiler; super-heated water boiler 531 0.0 1 1 97.4 8451 Machinery nes,washing/clean/ironing/impreg tex yarn 435 0.0 28.0 18.0 2 1 85.1 Emerging 8484 Gaskets & sim joints of met sheeting combined w/other material 423 0.0 38.0 25.0 1 2 95.7 Emerging 8430 Moving/grading/scraping/boring machinery for earth 416 0.0 1 2 76.4 8439 Machinery for making pulp of fibrous cellulosic mat for mak/fin paper 408 0.0 1 1 99.0 8470 Calculatg mach;accountg mach,cash register,ticket-issuing 391 0.0 1 1 100.0 8464 Machine-tool for working stone/ceramic 382 0.0 4.0 -16.0 1 1 86.6 Traditional 8403 Central heating boilers (other than 84.02) 369 0.0 8.0 -14.0 2 1 92.9 Traditional 8454 Converter,ladle,ingot moulds&casting mach,of a kind usd metal foundrie 366 0.0 1 2 100.0 8485 Machinery parts,not containing elec connectors,coils,nes 328 0.0 95.0 81.0 1 0 57.2 Emerging 8478 Machinery for preparing or making up tobacco 318 0.0 18.0 10.0 1 2 93.9 Emerging

SEBC/SSP 189

8441 Machinery for mak up paper pulp, paper/paperbd, incl cut machines, nes 297 0.0 -13.0 -23.0 1 0 83.2 Snail 8442 Machinery,app&equip for type-setting;printing type,plates 254 0.0 1 1 87.4 8482 Ball or roller bearings 253 0.0 1 1 100.0 8468 Machy&app for solderg,brazg (o/t those of hd 85.15) 223 0.0 1 1 100.0 8483 Transmission shafts&cranks, bearing housing; gearing; etc 190 0.0 0 0 94.4 8425 Pulley tackle & hoists other than skip hoists; winches&capstans; jacks 187 0.0 0 1 84.6 8436 Agricultural,hortic,forest,bee keeping machinery;poultry incubator etc 172 0.0 24.0 4.0 1 0 100.0 Star 8455 Metal-rolling mills and rolls therefor 170 0.0 0 0 100.0 8437 Machines for cleaning/sort seed,grain;machinery usd in the milling industry 165 0.0 18.0 11.0 1 0 90.9 Emerging 8412 Engines and motors, nes 163 0.0 1 0 100.0 8463 Machine-tools for wrkg metal, nes sintered met carbd 162 0.0 -3.0 -18.0 1 1 100.0 Snail 8461 Machine-tool for planing/shaping,etc sawing&other mach-tool for metal 155 0.0 0 0 62.9 8416 Furnace burners for liquid/pulv solid fuel/gas 152 0.0 1 1 100.0 8408 Diesel or semi-diesel engines 137 0.0 5.0 -17.0 0 0 88.2 Traditional 8458 Lathes for removing 129 0.0 0 0 94.0

SEBC/SSP 190

metal

8423 Weighing machinery (excl balances of a sensitivity of 5 cg or better) 84 0.0 0 0 100.0 8457 Maching centre,unit const mach&multistation transfer mach for wrkg met 77 0.0 0 0 100.0 8448 Auxiliary machinery (dobbie/jacquard parts), etc 74 0.0 0 0 100.0 8460 Machine-tool for deburring/grinding,etc 67 0.0 0 0 100.0 8447 Knittg machine,stitch-bonding&mach for mak gimpd y/lace,etc 65 0.0 0 0 100.0 8456 Mach-tool for removal of matrl by laser,photon beam,plasma arc proces 55 0.0 0 0 95.7 8459 Machine-tool for drill/boring/milling,threading/tapping (o/t hd no84.58) 42 0.0 -18.0 -32.0 0 0 92.1 Snail 8432 Agricultural, hortic, forest machinery for soil prep/cultivation 42 0.0 -11.0 -26.0 0 0 100.0 Snail 8467 Tool for working in the hand,pneumatic/with self-containd non-elec motor 39 0.0 0 0 100.0 8433 Harvesting/threshing machinery,hay mower,etc 37 0.0 0 0 100.0 8435 Presses,crushers machinery used in the mfr of wine/fruit juices 32 0.0 -20.0 -34.0 0 0 97.0 Snail 8445 Machine for preparing textile fiber;spinning,twisting,windg mach 32 0.0 0 0 100.0 8476 Money changg machines, automated 31 0.0 0 0 100.0

SEBC/SSP 191

goods-vendg mach (ex bevarages) 8475 Machine for assg elec/electrn lamp;mach for wrkg glassware 20 0.0 0 0 100.0 8466 Machinery parts&acces (machinery of hd 84.56 to 84.65) 18 0.0 0 0 100.0 8440 Book-binding machinery including book sewing machines 8 0.0 -69.0 -84.0 0 0 0.0 Snail 8404 Auxiliary plant for boiler of hd 8402/03,condenser for steam power unit 6 0.0 0 0 100.0 8453 Machinery for prepr,wrkg hide,leather/ reparing footwear 6 0.0 -24.0 0 0 100.0 8411 Turbo-jets, turbo-propellers and other gas turbines 4 0.0 0 0 0.0 8434 Milking machines and dairy machinery 2 0.0 0.0 -13.0 0 0 100.0 Snail

Leading partners

World 180,287 3.5 8.0 143

Free Zones 57,092 31.7 9.0 84 Syrian Arab Republic 26,586 14.7 36.0 -1.0 21 United Arab Emirates 26,460 14.7 70.0 28 Iraq 13,031 7.2 36 Saudi Arabia 11,913 6.6 21.0 17

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 85 Electrical, electronic equipment (2006, US$ 000)

Industry

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(US

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SEBC/SSP 192

8500 All industries in sector 85 298,948 5.8 40.0 23.0 77 26 64.3 Emerging

8525 Television camera, transmissn app for radio-telephony 139,679 2.7 67.0 43.0 4 7 97.3 Star 8544 Insulated wire/cable 54,820 1.1 60.0 9.0 42.0 6 11 83.6 Star 8501 Electric motors and generators (excluding generating sets) 20,062 0.4 96.0 84.0 4 4 98.7 Emerging 8528 Television receivers (incl video monitors & video projectors) 17,134 0.3 20.0 -4.0 3 6 80.7 Traditional 8529 Part suitable for use solely/princ with televisions, recpt app 12,922 0.3 50.0 23.0 2 12 61.7 Star 8504 Electric transformer,static converter (for example rectifiers) 12,532 0.2 101.0 86.0 5 4 96.6 Emerging 8524 Recorded tape, recorded for sound 6,893 0.1 110.0 103.0 3 5 94.3 Emerging 8502 Electric generating sets and rotary converters 6,481 0.1 4 3 99.8 8516 Electric instantaneous water heater,space htg; hair dryer 6,309 0.1 40.0 36.0 28.0 3 3 95.9 Emerging 8507 Electric accumulator 3,922 0.1 34.0 28.0 19.0 2 6 71.0 Emerging 8537 Board & panels, equipped with two/more switches, fuses 3,406 0.1 2 4 91.4 8538 Part suitable for use solely/princ with boards, panels, fuses, switches 1,714 0.0 2 3 89.3 8536 Electrical app for switchg (ex fuse,switche,etc) not exceedg 1000 volt 1,660 0.0 4 3 86.9 8543 Electrical mach&app having individual function, nes 1,503 0.0 7.0 -13.0 2 2 77.7 Traditional 8517 Electric app for line telephony,incl 1,304 0.0 -15.0 -23.0 6 3 69.1 Snail

SEBC/SSP 193

curr line system

8532 Electrical capacitors, fixed, variable or adjustable (pre-set) 1,074 0.0 69.0 60.0 1 1 100.0 Emerging 8531 Electric sound/visual signallg app (e.g. bell/siren, fire alarms) 880 0.0 12.0 -9.0 2 1 97.8 Traditional 8542 Electronic integrated circuits and microassemblies 828 0.0 3 3 89.3 8509 Electro-mechanical domestic appliance,with self-containd electric motor 821 0.0 20.0 8.0 3 2 97.8 Emerging 8535 Electrical app for switching (ex fuse,switche,etc) exceeding 1000 volt 569 0.0 1 2 95.5 8539 Electric filament or discharge lamps 551 0.0 2 1 96.5 8506 Primary cells and primary batteries 534 0.0 11.0 3.0 2 1 68.3 Emerging 8518 Microphones&stand;loudspeaker;headphone/earphone;sound amplifier set 518 0.0 -1.0 -14.0 2 1 98.6 Snail 8548 Electrical parts of machinery/app, nes 466 0.0 87.0 70.0 1 1 100.0 Emerging 8508 Electro-mechanical tool for working in the hand,with self-contd elec-motor 393 0.0 214.0 200.0 1 1 100.0 Emerging 8511 Electrical ignition/starting equip (spark plugs/starter motors) 347 0.0 1 1 100.0 8514 Industrial/laboratory elec furnaces&ovens 306 0.0 1 1 97.0 8541 Diodes/transistors semiconductor devices; etc 247 0.0 1 1 100.0 8527 Reception app for radio-telephony/radio 211 0.0 -6.0 -9.0 1 1 100.0 Snail

SEBC/SSP 194

-broadcastg

8512 Electrical lighting/signalling equip,windscreen wipers,defrosters,etc 197 0.0 110.0 97.0 0 1 100.0 Emerging 8523 Prepared unrecordd media for sound record (tapes) 164 0.0 -2.0 -21.0 0 0 95.1 Traditional 8503 Parts suitable for use solely/princ with machines of hd no 85.01/85.02 141 0.0 -22.0 -41.0 1 0 100.0 Traditional 8520 Magnetc tape recorder & sound rec app 125 0.0 111.0 89.0 1 0 100.0 Star 8510 Shavers and hair clippers, with selfcontained electric motor 112 0.0 118.0 101.0 0 0 68.8 Emerging 8521 Video recording or reproducing apparatus 108 0.0 0 1 100.0 8522 Parts and accessories of video, magnetic recorder 104 0.0 1 1 100.0 8515 Electric,laser/photon beam/plasma arc solderg with cut capabilitie,etc 99 0.0 -5.0 -23.0 0 0 100.0 Traditional 8546 Electrical insulators of any material 45 0.0 0 0 100.0 8513 Portable electric lamp designd to functn by batt/magn. 42 0.0 0 0 100.0 8540 Thermionic,cold cathode valves&tube (e.g. tv camera tubes) 31 0.0 0 0 100.0 8526 Radar apparatus, radio navigational app&radio remote control apparatus 29 0.0 0 0 100.0 8533 Electrical resistor (incl rheostats),o/t heatg resistor 22 0.0 0 0 100.0 8519 Turntable (record-decks),record-player 16 0.0 0 0 100.0

SEBC/SSP 195

8545 Carbon electrodes / brushes / lamp carbons 10 0.0 0 0 100.0 8530 Electrical signallg/traffic control equip for rlwy/road (o/t hd 8608) 6 0.0 0 0 100.0 8505 Electro-magnets;permanent magnets;magnetic chucks;etc 2 0.0 0 0 0.0 8547 Insulating fitting for elec mach,app/equip (o/t insulator of hd no85.46) 1 0.0 0 0 100.0

Leading partners

World 298,948 5.8 40.0 77

Syrian Arab Republic 114,769 38.4 152.0 22.0 9 Iraq 44,943 15.0 5.0 22 Free Zones 32,484 10.9 9.0 1.0 46 Saudi Arabia 30,977 10.4 132.0 7 United Arab Emirates 29,690 9.9 121.0 4

Exchange rates: US$ 1.00 = €

0.797

US$ 1.00 = SP 54.211

Jordan's Exports - 87 Vehicles, other than railway or tramway (2006, US$ 000)

Industry

Ex

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(U

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0

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)

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(%

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v

alu

e

(%

p

.a.)

Gro

wth

in

v

olu

me

(%

p.a

.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

ma

rke

ts

>

US

D 1

00.

000

Sh

are

of

top

3

ma

rket

s (%

)

Str

uc

tura

l P

erf

orm

an

ce

8700 All industries in sector 87 123,101 2.4 7.0 2.0 -6.0 33 18 81.5 Snail

8703 Cars (incl. station wagon) 34,119 0.7 0.0 -11.0 4 11 92.6 Snail 8708 Parts & access of motor vehicles 28,486 0.6 6.0 10.0 -8.0 8 13 91.1 Snail 8702 Public-transport type passenger motor vehicles 27,954 0.5 1 7 85.4 8705 Specl purp motor vehicles (fire fight veh,crane lorry) 11,759 0.2 81.0 58.0 4 5 96.5 Star 8704 Trucks, motor vehicles for the 9,385 0.2 8.0 -5.0 5 7 90.0 Snail

SEBC/SSP 196

transport of goods

8716 Trailers&semi-trailers;other vehicles not mechanically propelled 8,039 0.2 26.0 3.0 4 7 81.3 Star 8701 Tractors (other than tractors of heading no 87.09) 2,015 0.0 0.0 -19.0 2 3 94.5 Traditional 8711 Motorcycles, side-cars 724 0.0 81.0 66.0 3 1 100.0 Emerging 8707 Bodies for motor vehicles 283 0.0 37.0 16.0 1 1 100.0 Star 8706 Chassi fitted with engine for motor vehicles 110 0.0 129.0 114.0 1 1 100.0 Emerging 8713 Invalid carriages (wheelchairs), w/n motorised 70 0.0 0 0 100.0 8709 Work truck,self-propeled, for factorie/airport & parts 64 0.0 0 0 100.0 8712 Bicycles & other cycles, not motorised 41 0.0 0 0 100.0 8715 Baby carriages and parts thereof 35 0.0 0 0 100.0 8714 Parts and accessories of motorcycles & cycles 16 0.0 0 0 100.0

Leading partners

World 123,101 2.4 7.0 2.0 33

Free Zones 72,716 59.1 23.0 6.0 28 Kuwait 17,723 14.4 132.0 3 Iraq 9,923 8.1 9 Sudan 5,633 4.6 66.0 5 Saudi Arabia 5,549 4.5 8

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP 54.211

SEBC/SSP 197

Appendix F Exports of Tunisia, 2006

Tunisia's Exports - 03 Fish, crustaceans, molluscs, aquatic invertebrates, nes (2006, in US$ 000)

Industry

Ex

po

rts

(US

$ 0

00

)

As

a s

har

e

of

wo

rld

e

xp

ort

s (

%)

Gro

wth

in

valu

e (

%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d

exp

ort

s (

%

pa

)N

o o

f p

rod

uct

s >

U

SD

10

0.0

00

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

mar

ke

ts

(%)

Str

uct

ura

l P

erfo

rma

nce

0300 All industries in sector 03 171,274 0.3 13.0 1.0 3.0 29 16 86 Emerging

0306 Crustaceans 64,558 0.4 12.0 0.0 7.0 5 3 100 Emerging 0307 Moluscs 41,146 0.6 3.0 -1.0 -4.0 8 9 92 Snail 0304 Fish fillets and pieces, fresh, chilled or frozen 27,109 0.2 187.0 174.0 2 4 99 Emerging 0302 Fish, fresh, whole 25,096 0.3 20.0 2.0 6.0 3 10 67 Emerging 0303 Fish, frozen, whole 9,433 0.1 97.0 87.0 6 5 95 Emerging 0305 Fish,cured or smoked and fish meal fit for human consumption 3,566 0.1 63.0 53.0 4 3 100 Emerging 0301 Live fish 346 0.0 1 1 100

Leading partners

World 171,274 0.3 13.0 1.0 29

Italy 66,876 0.1 13.0 3.0 17

Spain 45,988 0.1 6.0 -3.0 17

Japan 33,932 0.1 66.0 4

Greece 7,999 0.0 25.0 3

France 5,543 0.0 -4.0 -15.0 7

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 08 Edible fruit, nuts, peel of citrus fruit, melons (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%

)

Gro

wth

in

va

lue

(%

p.a

.)

Gro

wth

in

v

olu

me

(%

p

.a.)

Gro

wth

of

sha

re in

w

orl

d e

xpo

rts

(%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.

000

No

of

ma

rket

s >

U

SD

10

0.0

00

Sh

are

of

top

3

mar

ket

s (%

)

Str

uc

tura

l P

erf

orm

an

ce

0800 All industries in sector 08 136,171 0.3 15.0 1.0 1.0 17 35 64.9 Emerging

SEBC/SSP 198

0804 Dates, figs,pineapples, mangoes, avocadoes, guavas 111,922 3.0 14.0 3.0 -6.0 2 32 60.7

Traditional

0805 Citrus fruit, fresh or dried 11,616 0.2 4.0 -3.0 -5.0 1 1 99.7 Snail 0807 Melons (including watermelons) & papayas, fresh 5,436 0.2 449.0 434.0 1 3 98.6 Emerging

0802 Nuts nes 1,882 0.0 73.0 52.0 3 3 100.0 Star 0809 Apricots, cherries, peaches, nectarines, plums & sloes, fresh 1,606 0.1 66.0 54.0 3 3 96.5 Emerging 0813 Dried fruit 1,490 0.1 3 5 82.6 0810 Fruits nes, fresh 883 0.0 40.0 23.0 2 3 87.5 Star 0811 Frozen fruits & nuts 854 0.0 58.0 40.0 1 2 97.9 Star 0814 Citrus fruit and melon peel 251 0.6 15.0 4.0 10.0 1 1 100.0 Emerging 0806 Grapes, fresh or dried 88 0.0 0 0 100.0 0812 Provisionally preserved fruits & nuts (unfit for immediate consumption) 25 0.0 0 0 100.0 0801 Brazil nuts, cashew nuts & coconuts 12 0.0 0 0 100.0 0808 Apples, pears and quinces, fresh 11 0.0 0 0 100.0 0803 Bananas and plantains, fresh or dried 0 0.0 0 0 0.0

Leading partners

World 136,171 0.3 15.0 1.0 17

France 51,486 0.1 11.0 -2.0 12

Morocco 20,317 0.0 20.0 6.0 1

Germany 16,538 0.0 19.0 9.0 2

Italy 13,789 0.0 12.0 2.0 7

Spain 11,026 0.0 15.0 1.0 3

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

SEBC/SSP 199

Tunisia's Exports - 15 Animal,vegetable fats and oils, cleavage products, etc (2006, in US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

v

alu

e (%

p.a

.)

Gro

wth

in

v

olu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

US

D 1

00.0

00

No

of

ma

rke

ts (

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

1500 All industries in sector 15 692,868 1.6 103.0 88.0 8 20 95.1 Emerging

1509 Olive oil and its fractions 668,617 11.7 104.0 84.0 2 16 96.7 Star 1510 Other oils from olives 11,932 3.9 327.0 297.0 1 3 100.0 Star 1517 Margarine 6,782 0.2 107.0 91.0 1 5 95.4 Emerging 1516 Animal or veg fats, oils&fract, hydrogenated 4,420 0.1 42.0 33.0 30.0 1 3 100.0 Emerging 1514 Rape,colza or mustard oil & their fractions 546 0.0 1 1 100.0 1522 Degras and residues 307 0.4 1 1 100.0 1515 Fixed vegetable fats&oils & their fractions 261 0.0 126.0 112.0 1 1 100.0 Emerging

Leading partners

World 692,868 1.6 103.0 8

Italy 431,612 1.0 90.0 3

Spain 164,125 0.4 4 United States of America 63,261 0.1 113.0 84.0 3

Portugal 9,625 0.0 2

France 6,472 0.0 131.0 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 25 Salt, Sulphur, earth, stone, plaster, lime & cememt (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

vo

lum

e

(% p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

ma

rke

ts

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

2500 All industries in sector 25 134,660 0.5 12.0 3.0 -2.0 17 29 48.4 Snail

2510 Calcium and aluminum 42,683 3.3 2 13 67.0

SEBC/SSP 200

calcium phosphates, natural & phosphatic chalk 2523 Cements, portland, aluminous, slag, supersulfate & similar hydraulic cements 39,561 0.5 14.0 0.0 -4.0 4 8 75.6 Traditional

2501 Salt 33,812 2.0 26.0 12.0 13.0 1 13 52.3 Emerging 2515 Marble, travertine, ecaussine etc, 7,809 0.6 39.0 31.0 25.0 2 4 95.5 Emerging 2505 Natural sands of all kinds, except metal-bearing 4,961 0.4 64.0 53.0 1 2 100.0 Emerging 2520 Gypsum; anhydrite; plasters 3,202 0.4 61.0 35.0 44.0 1 5 88.6 Star

2509 Chalk 594 0.4 1 1 99.0 2526 Natural steatite, w/n roughly trimmed or merely cut etc; talc 563 0.1 107.0 105.0 95.0 1 1 98.0 Emerging

2506 Quartz 528 0.3 1 1 100.0 2522 Quicklime, slaked lime and hydraulic lime 372 0.1 38.0 14.0 2 2 100.0 Star 2516 Granite, porphyry, basalt, sandstone & other monumental or building stone 232 0.0 1 1 100.0 2525 Mica, including splittings; mica waste 83 0.1 0 0 100.0 2517 Pebbles, gravel, brocken/crushed stone; macadam of slag or dross 63 0.0 0 0 100.0 2513 Pumice stone;emery;natural corundum & garnet &other natural abrasives 62 0.0 0 0 100.0

2508 Clay nes 41 0.0 89.0 77.0 0 0 100.0 Emerging 2512 Siliceou fossil meal & similar siliceous earths 18 0.0 0 0 100.0 2530 Mineral substances, nes 15 0.0 65.0 48.0 0 0 100.0 Star

SEBC/SSP 201

2507 Kaolin and other kaolinic clays 13 0.0 60.0 51.0 0 0 100.0 Emerging

Leading partners

World 134,660 0.5 12.0 3.0 17

Italy 26,516 0.1 31.0 14.0 10

Algeria 20,090 0.1 -1.0 -6.0 4

Poland 18,559 0.1 10.0 0.0 1

Norway 6,927 0.0 26.0 22.0 1

Malaysia 6,417 0.0 45.0 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 28 Inorganic chemicals, precius metal compounds, isotopes (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

vo

lum

e

(% p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

ma

rket

s

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

2800 All industries in sector 28 294,764 0.4 5.0 -3.0 -13.0 13 32 62.0 Traditional

2809 Diphosphorus pentaoxide; phosphoric acid and polyphosphoric acids 194,793 8.1 4.0 -7.0 -12.0 1 7 88.3 Snail 2835 Phosphinates, phosphonates, phosphates & polyphosphates hypophosphites, phosphites 66,450 3.1 16.0 6.0 4.0 5 22 64.5 Emerging 2826 Fluorides;fluorosilicate,fluoraluminates & other complex fluorine salt 28,631 4.6 0.0 11.0 -6.0 1 5 95.5 Snail 2836 Carbonate;peroxocarbonate, commercial ammonium carbonate 3,595 0.1 37.0 30.0 23.0 3 5 88.2 Emerging 2833 Sulphates; alums; peroxosulphates (persulphates) 968 0.0 4.0 -19.0 -17.0 2 3 100.0 Traditional 2823 Titanium oxides 135 0.0 40.0 41.0 1 0 98.5

SEBC/SSP 202

2849 Carbides, whether or not chemically defined 78 0.0 0 0 100.0 2825 Hydrazine & hydroxylamine & their inorganic salts; other inorganic bases 28 0.0 0 0 100.0 2801 Fluorine, chlorine, bromine and iodine 12 0.0 0 0 100.0 2828 Hypochlorites;commercial calcium hypochlorite;chlorites;hypobromides 11 0.0 0 0 100.0 2804 Hydrogen, rare gases & other non-metals 0 0.0 -72.0 -94.0 0 0 0.0 Traditional

Leading partners

World 294,764 0.4 5.0 -3.0 13

France 33,625 0.0 2 Saudi Arabia 27,954 0.0 113.0 3 Morocco 20,521 0.0 11.0 1.0 4 Italy 19,329 0.0 11.0 2.0 2 Spain 4,365 0.0 25.0 3

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - Plastics and articles thereof (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

mar

ke

ts

>

US

D 1

00

.00

0

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uct

ura

l P

erf

orm

an

ce

3900 All industries in sector 39 112,460 0.0 52 26 72.1

3926 Article of plastic nes. 48,944 0.1 37.0 28.0 26.0 5 9 94.0 Emerging 3917 Tubes, pipes & hoses & fittings therefor of plastics 22,913 0.2 99.0 80.0 7 8 73.7 Star 3920 Other plates, sheets, film, foil, tape, 6,947 0.0 5 7 86.4

SEBC/SSP 203

strip of plastics etc.

3922 Baths,shower-baths,wash-basins,bidet etc of plastic 6,112 0.2 0.0 -18.0 -17.0 2 2 96.2 Traditional 3923 Plastic packing goods or closures stoppers, lids, caps, closures, plastic containers 5,648 0.0 4.0 -1.0 -10.0 7 7 82.3 Snail 3907 Polyacetal,o polyether,epoxide resin,polycarbonate,etc,in primary form 5,144 0.0 41.0 30.0 21.0 3 5 89.3 Star 3915 Waste, parings and scrap, of plastics 3,321 0.1 132.0 100.0 2 3 93.3 Star 3921 Plates, sheets, film, foil and strip, of plastics, nes 3,182 0.0 13.0 -2.0 4 5 75.7 Snail 3925 Builders' ware of plastics, nes 2,587 0.0 5.0 -13.0 4 4 88.6 Traditional 3905 Polymers of vinyl acetate/o vinyl esters&o vinyl poly,in primary forms 2,362 0.1 27.0 14.0 3 4 92.0 Emerging 3924 Tableware, kitchenware, toiletery articles, of plastic 2,057 0.0 26.0 12.0 2 3 94.6 Emerging 3919 Self-adhesive plates, sheets, film etc of plastic w/n in rolls 1,477 0.0 73.0 56.0 2 3 94.9 Star 3904 Polymers of vinyl chloride/other halogenated olefins, in primary forms 560 0.0 -5.0 -19.0 2 2 84.6 Snail 3906 Acrylic polymers in primary forms 242 0.0 23.0 6.0 2 1 96.7 Emerging 3903 Polymers of styrene, in primary forms 146 0.0 0 0 80.8 3902 Polymers of propylene or of other olefins, in primary forms 131 0.0 1 0 94.7

SEBC/SSP 204

3909 Amino-resins, pheonolic resins and polyurethanes, in primary forms 123 0.0 1 1 100.0 3908 Polyamides in primary forms 106 0.0 0 0 96.2 3916 Monofilament with cross-section exceeding 1mm 90 0.0 21.0 4.0 0 0 100.0 Star 3901 Polymers of ethylene, in primary forms 82 0.0 -2.0 -28.0 0 0 100.0 Traditional 3918 Floor, wall & ceiling coverings in rolls or tiles, of plastics, nes 52 0.0 0 0 100.0 3910 Silicones in primary forms 36 0.0 0 0 100.0 3913 Natural polymers & modified natural polymers nes, in primary forms 9 0.0 -16.0 -27.0 0 0 100.0 Snail 3912 Cellulose & its chemical derivatives nes in primary forms 1 0.0 -51.0 -61.0 0 0 100.0 Snail 3911 Petroleum resins,polyterpenes,polysulphides etc nes,in primary forms 0 0.0 0 0 0.0 3914 Ion-exchangers basd on polymers of nos 39.01 to 39.13,in primary forms 0 0.0 0 0 0.0

Leading partners

World 112,460 0.0 52

France 52,262 0.0 32.0 10.0 27 Italy 22,436 0.0 28.0 34.0 15 Morocco 6,409 0.0 4 Algeria 6,196 0.0 11 Spain 5,142 0.0 54.0 5

Exchange rates: US$

1.00 = € 0.797

SEBC/SSP 205

US$ 1.00 = SP

54.211

Tunisia's Exports - 42 Articles of leather or animal gut, harnesses, and travel goods (2006, US$ 000)

Industry

Ex

po

rts

(US

$ 00

0)

As

a s

har

e o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

valu

e

(%

p.a

.)

Gro

wth

in

volu

me

(%

p.a

.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

mar

ket

s

>

US

D 1

00

.00

0

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uct

ura

l P

erfo

rma

nce

4200 All industries in sector 42 71,115 0.2 12.0 5.0 1.0 18 24 73.5 Emerging

4202 Trunks,suit-cases,camera cases,handbags etc,of leather,plas,tex etc 39,190 0.1 13.0 -1.0 -1.0 12 16 72.1 Snail 4203 Articles of apparel&clothing access, of leather or composition leather 21,550 0.3 8.0 0.0 5.0 4 15 75.4 Emerging 4205 Articles of leather or composition leather, nes 5,704 0.2 10.0 -8.0 1 3 96.4 Traditional 4201 Saddlery and harness for any animal, of any material 4,470 0.5 34.0 37.0 21.0 1 3 98.8 Emerging 4204 Articles of leather or composition leather for technical uses 61 0.1 0 0 100.0 4206 Articles of gut, of goldbeater's skins, of bladders or of tendons 0 0.0 0

Leading partners

World 71,115 0.2 12.0 5.0 18

France 27,392 0.1 11.0 5.0 13

Italy 15,168 0.0 12.0 10

Germany 9,686 0.0 11.0 13.0 3

Japan 3,227 0.0 63.0 5

China 824 0.0 137.0 3

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

SEBC/SSP 206

Tunisia's Exports - Articles of apparel, accessories, knit or crocheted (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s (%

)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

vo

lum

e

(% p

.a.)

Gro

wth

of

sh

are

in

w

orl

d e

xp

ort

s (%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.00

0

No

of

ma

rket

s

>

US

D 1

00.0

00

Sh

are

of

top

3

ma

rke

ts (

%)

Str

uc

tura

l P

erf

orm

an

ce

6100 All industries in sector 61

1,029,315 8.8 8.0 0.0 -5.0 98 51 76.1 Snail

6110 Jerseys, pullovers, cardigans, etc, knitted or crocheted 293,072 2.5 6.0 -2.0 -5.0 4 31 84.9 Snail 6109 T-shirts, singlets and other vests, knitted or crocheted 276,998 2.4 12.0 4.0 -4.0 2 31 71.7 Snail 6108 Women's slips,panties,pyjamas, bathrobes etc, knitted/crocheted 139,025 1.2 4.0 8.0 -6.0 10 17 74.1 Snail 6112 Track suits, ski suits and swimwear, knitted or crocheted 78,444 0.7 17.0 1.0 4.0 7 18 87.7 Emerging 6104 Women's suits,dresses,skirt etc&short, knit/croch 46,771 0.4 22 22 75.3 6106 Women's blouses & shirts, knitted or crocheted 34,350 0.3 19.0 10.0 9.0 3 19 82.8 Emerging 6111 Babies' garments, knitted or crocheted 27,316 0.2 -1.0 -10.0 -11.0 4 13 82.3 Snail 6105 Men's shirts, knitted or crocheted 25,915 0.2 9.0 -7.0 -1.0 3 15 71.0 Snail 6107 Men's underpants,pyjamas,bathrobes etc,knit/croch 25,707 0.2 4.0 -7.0 -4.0 7 7 94.9 Snail 6103 Men's suits,jackets,trousers etc&shorts, knit/croch 23,319 0.2 23.0 4.0 11 9 85.7 Star 6115 Panty hose, tights, stockings & other hosiery, knitted or crocheted 20,168 0.2 34.0 21.0 8 8 94.8 Emerging 6114 Garments, knitted or crocheted, 18,099 0.2 17.0 10.0 0.0 4 13 72.2 Star

SEBC/SSP 207

nes

6116 Gloves, mittens and mitts, knitted or crocheted 9,103 0.1 3.0 14.0 -13.0 3 4 95.1 Snail 6117 Clothing access nes,knitted/croch 4,192 0.0 3 5 89.5 6102 Women's overcoat,cape, etc,knitted/crochetd,o/t of hd 61.04 3,022 0.0 3 5 73.4 6101 Men's overcoats,capes,etc, knitted/crochetd,o/t of hd 61.03 2,635 0.0 -8.0 -23.0 -19.0 3 5 73.9 Snail 6113 Garment,made up of knitted/crochetd fabric of hd no 59.03,06,07 559 0.0 20.0 3.0 1 2 95.9 Emerging

Leading partners

World 1,029,3

15 8.8 8.0 0.0 98

France 385,127 37.4 7.0 3.0 66

Italy 334,464 32.5 6.0 0.0 56

Spain 64,144 6.2 25.0 0.0 32

Germany 51,446 5.0 32 United Kingdom 35,066 3.4 5.0 -8.0 22

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - Articles of apparel or accessories, not knitted or crocheted (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

00

0)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

v

alu

e

(%

p.a

.)

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of

pro

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U

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10

0.0

00

No

of

ma

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s

>

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D 1

00.

000

Sh

are

of

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3

mar

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%)

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6200 All industries in sector 62

2,525,155 21.5 2.0 -8.0 -8.0 109 60 72.0 Snail

6203 Men's suits, jackets, trousers etc & shorts 906,495 7.7 4.0 -8.0 -6.0 15 47 77.4 Snail 6204 Women's suits, jackets,dresse 751,426 6.4 1.0 -8.0 -10.0 25 49 70.6 Snail

SEBC/SSP 208

s skirts etc&shorts

6212 Brassieres,girdles,corsets,braces,suspenders etc&parts 226,939 1.9 7.0 -8.0 4 14 81.4 Snail 6211 Track suits, ski suits and swimwear; other garments 226,669 1.9 4.0 -3.0 -8.0 10 15 79.8 Snail 6205 Men's shirts 142,524 1.2 8.0 0.0 2.0 4 26 74.3 Emerging 6206 Women's blouses & shirts 66,422 0.6 4 20 74.6 6201 Men's overcoats, capes, windjackets etc o/t those of hd 62.03 62,712 0.5 8 15 84.1 6210 Garment made up of fabric of heading no 56.02,56.03,59.03,59.06/59.07 38,969 0.3 -2.0 -2.0 -16.0 5 8 87.7 Snail 6202 Women's overcoats,capes,wind-jackets etc o/t those of hd 62.04 33,458 0.3 8 15 74.8 6209 Babies' garments and clothing accessories 29,867 0.3 4 9 93.4 6208 Women's singlets, slips, briefs, pyjamas, bathrobes etc 20,335 0.2 8 9 80.0 6207 Men's singlets, briefs, pyjamas, bathrobes etc 9,342 0.1 -14.0 -13.0 -18.0 6 5 88.6 Snail 6217 Clothing accessories nes; o/t of hd 62.12 5,201 0.0 4.0 -2.0 1.0 2 7 68.5 Emerging 6214 Shawls, scarves, mufflers, mantillas, etc 2,065 0.0 25.0 14.0 14.0 4 2 93.9 Emerging 6215 Ties, bow ties and cravats 1,549 0.0 50.0 41.0 42.0 1 2 99.7 Emerging 6216 Gloves, mittens and mitts 598 0.0 3.0 -9.0 1 2 98.0 Snail 6213 Handkerchiefs 1 0.0 0 0 100.0

SEBC/SSP 209

Leading partners

World 2,525,1

55 21.5 2.0 -8.0 109

France 834,417 33.0 -1.0 -8.0 90

Italy 622,662 24.7 11.0 0.0 85

Germany 360,750 14.3 50

Netherlands 106,243 4.2 0.0 32

Spain 89,071 3.5 19.0 3.0 35

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 63 Other made textile articles, sets, worn clothing, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

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(%

)

Gro

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(%

p

.a.)

Gro

wth

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(%

p.a

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Gro

wth

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are

in

w

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d e

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(%

p.a

.)

No

of

pro

du

cts

>

U

SD

100

.000

No

of

ma

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ts

>

US

D 1

00.0

00

Sh

are

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s (%

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6300 All industries in sector 63 163,437 1.4 15.0 6.0 1.0 39 20 91.0 Emerging

6302 Bed, table, toilet and kitchen linens 57,286 0.5 25.0 11.0 13.0 12 6 97.6 Emerging 6304 Furnishing articles nes, excluding 94.04 32,674 0.3 16.0 11.0 0.0 5 4 97.7 Snail 6303 Curtains, drapes & interior blinds 31,195 0.3 28.0 8.0 4 6 96.9 Star 6307 Made up articles nes, including dress patterns 24,414 0.2 3 10 90.1 6306 Tents&camping goods, tarpaulins, sails for boats, etc 7,524 0.1 6 3 96.1 6310 Rags,scrap twine,crodage,rope 4,109 0.0 -3.0 -1.0 -11.0 2 5 88.0 Snail 6305 Sacks and bags of a kind used for the packing of goods 3,392 0.0 35.0 22.0 4 2 98.6 Emerging 6309 Worn clothing and articles 1,329 0.0 1 5 51.6 6308 Set consisting of woven fab&yarn for making up into rugs,tapestrie etc 1,080 0.0 1 1 100.0

SEBC/SSP 210

6301 Blankets and travelling rugs 259 0.0 1 0 76.1

Leading partners

World 163,437 1.4 15.0 6.0 39

France 103,219 63.2 16.0 11.0 33

Poland 6,211 3.8 16.0 1

Italy 3,606 2.2 9 United States of America 2,906 1.8 48.0 1

Spain 1,998 1.2 35.0 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 64 Footwear, gaiters and the like, parts thereof (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

volu

me

(%

p.a

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Gro

wth

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s

(% p

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No

of

pro

du

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>

U

SD

10

0.0

00

No

of

ma

rket

s

>

US

D 1

00.

00

0

Sh

are

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3

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%)

Str

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6400 All industries in sector 64 519,852 4.4 10.0 1.0 0.0 22.0 37.0 86.4 Snail

6403 Footwear, upper of leather 341,184 2.9 16.0 2.0 6.0 6.0 33.0 83.4 Emerging 6406 Part of footwear;romovable in-soles,heel cushion etc;gaiter etc 162,342 1.4 1.0 -5.0 -4.0 3.0 8.0 98.3 Snail 6402 Footwear nes, outer soles and uppers of rubber or plastics 8,941 0.1 4.0 5.0 81.4 6404 Footwear, upper of textile mat 4,660 0.0 3.0 5.0 82.8 6405 Footwear, nes 1,488 0.0 15.0 -2.0 3.0 3.0 84.6 Traditional 6401 W/p foot,outer sole/upper of rbr/pla upper not fixd to sole nor assembld 1,093 0.0 107.0 95.0 3.0 2.0 91.0 Emerging

Leading partners

World 519,852 4.4 10.0 1.0 22.0

SEBC/SSP 211

Italy 220,874 42.5 4.0 -5.0 12.0

France 180,326 34.7 12.0 7.0 17.0

Germany 48,066 9.2 7.0 0.0 7.0

Spain 21,283 4.1 39.0 5.0 United Kingdom 17,344 3.3 96.0 3.0

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 71 Pearls, precious stones, metals, coins, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

00

0)

As

a s

ha

re o

f w

orl

d e

xp

ort

s

(%)

Gro

wth

in

v

alu

e

(%

p.a

.)

Gro

wth

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(%

p.a

.)

Gro

wth

of

shar

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(% p

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No

of

pro

du

cts

>

U

SD

10

0.0

00

No

of

ma

rket

s

>

US

D 1

00.

000

Sh

are

of

top

3

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%)

Str

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7100 All industries in sector 71 61,671 0.5 55.0 36.0 10 5 97.1 Star

7113 Articles of jewellery & parts thereof 52,227 0.4 80.0 64.0 3 3 99.9 Emerging 7117 Imitation jewellery 4,018 0.0 18.0 0.0 2 2 98.3 Star 7112 Waste & scrap of precious metal 3,668 0.0 491.0 463.0 3 3 100.0 Star 7108 Gold unwrought or in semi-manuf forms 1,315 0.0 1 1 100.0 7102 Diamonds, not mounted or set 416 0.0 1 1 100.0 7115 Articles of precious metal or metal clad with precious metal, nes 15 0.0 0 0 100.0 7106 Silver,unwrght or in semi-manuf. form 0 0.0 0 0 0.0 7103 Precious & semi-precious stone,not strug, 0 0.0 0 0 0.0 7114 Articles of goldsmith's/silversmith's wares&pts 0 0.0 -65.0 -101.0 0 0 0.0 Traditional

7118 Coin 0 0.0 0 0 0.0 7110 Platinum, unwrought or in semimanufactured forms 0 0.0 0 0 0.0

SEBC/SSP 212

7111 Base metals, silver or gold, clad w plat, nfw than semi-manufactured 0 0.0 0 0 0.0 7104 Syn/reconstr prec/semi-prec stones, not strg/mounted/set 0 0.0 0 0 0.0 7105 Dust&powder of precious or semi-precious stones 0 0.0 0 0 0.0 7116 Articles of natural or cultured pearls, prec/semi prec stones 0 0.0 -62.0 -85.0 0 0 0.0 Traditional

Leading partners

World 61,671 0.5 55.0 10

United States of America 46,024 74.6 771.0 1

France 10,665 17.3 3.0 7

Germany 3,219 5.2 134.0 1

Italy 1,264 2.0 102.0 4

Switzerland 344 0.6 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 72 Iron and Steel (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00)

As

a s

ha

re o

f w

orl

d e

xpo

rts

(%)

Gro

wth

in

va

lue

(%

p

.a.)

Gro

wth

in

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(% p

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Gro

wth

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sh

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in

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No

of

pro

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U

SD

100

.00

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No

of

ma

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s

>

US

D 1

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00

Sh

are

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7200 All industries in sector 72 176,445 1.5 36.0 11.0 9.0 27 15 68.0 Star

7210 Flat-rolled prod of iron or non-al/s wd>/=600mm,clad, plated or coated 102,847 0.9 33.0 12.0 2 5 86.2 Star 7214 Bars&rods of iron/non-al/s, nfw than forged, hr, hd,/hot-extruded 27,819 0.2 4 5 88.0

SEBC/SSP 213

7216 Angles, shapes and sections of iron or non-alloy steel 17,197 0.1 345.0 317.0 4 6 81.9 Star 7204 Ferrous waste and scrap; remelting scrap ingots or iron or steel 12,397 0.1 -4.0 -1.0 -41.0 5 9 61.3 Traditional 7209 Flat-rolld prod of iron/non-alloy steel wd>/=600mm,cr,not clad 7,371 0.1 299.0 281.0 4 4 96.1 Star 7217 Wire of iron or non-alloy steel 6,633 0.1 26.0 19.0 5.0 3 3 96.9 Star 7213 Bars & rods, hr, in irreg wound coils, of iron or non-alloy steel 877 0.0 -8.0 -29.0 -30.0 1 1 100.0 Traditional 7229 Wire of other alloy steel 305 0.0 1 1 100.0 7208 Flat-rolld products of iron/non-al/s wdth>/=600mm,hr,not clad 272 0.0 1 1 100.0 7207 Semi-finished products of iron or nonalloy steel 227 0.0 1 1 100.0 7228 Bars&rods,other alloy steel; hollow drill bars, etc. 219 0.0 1 1 100.0 7215 Bars & rods of iron or non-alloy steel nes 84 0.0 0 0 100.0 7211 Flat-rolled prod of iron/non-al/s wd less than 600mm,not clad 78 0.0 0 0 100.0 7226 Flat-rolld products of other alloy steel of a width of less than 600mm 31 0.0 0 0 100.0 7202 Ferro-alloys 28 0.0 0 0 100.0 7222 Bars & rods of stainless steel nes; angles, shapes 23 0.0 0 0 100.0 7212 Flat-rolld prod of iron/non-al/s wd less than 600mm,clad 14 0.0 6.0 -13.0 0 0 100.0 Traditional 7220 Flat-rolled products of 4 0.0 0 0 100.0

SEBC/SSP 214

stainless steel, of a width of less than 600mm

Leading partners

World 176,445 1.5 36.0 11.0 27

France 50,350 28.5 26.0 7.0 12

Spain 43,328 24.6 81.0 7 United Kingdom 26,294 14.9 93.0 3

Morocco 21,772 12.3 94.0 7

Italy 19,113 10.8 14.0 -8.0 7

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 73 Articles of iron and steel (2006, US$ 000)

Industry

Ex

po

rts

(US

$

000

)

As

a s

har

e o

f w

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xp

ort

s

(%)

Gro

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va

lue

(%

p

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Gro

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in

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me

(%

p.a

.)

Gro

wth

of

shar

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w

orl

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xp

ort

s

(% p

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No

of

pro

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>

U

SD

10

0.0

00

No

of

mar

ket

s

>

US

D 1

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.00

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7300 All industries in sector 73 117,319 1.0 38.0 17.0 17.0 39 18 88.2 Star

7320 Springs and leaves for springs, of iron or steel 32,596 0.3 35.0 17.0 19.0 1 6 95.6 Emerging 7308 Structures (rods,angle, plates) of iron & steel nes 31,484 0.3 54.0 31.0 5 7 93.7 Star 7326 Articles of iron or steel nes 21,265 0.2 49.0 24.0 31.0 3 6 91.2 Star 7310 Iron &steel tank,cask,drum can,boxes (cap 7,571 0.1 105.0 93.0 3 2 98.8 Emerging 7307 Tube or pipe fittings, of iron or steel 5,083 0.0 60.0 36.0 2 1 97.6 Star 7306 Tubes, pipes and hollow profiles of iron or steel, nes 4,119 0.0 6.0 -20.0 4 4 93.3 Traditional 7325 Cast articles of iron or steel nes 3,771 0.0 83.0 64.0 3 2 99.4 Star 7323 Iron & steel tables & household articles 1,898 0.0 -2.0 -8.0 -10.0 2 1 96.1 Snail

SEBC/SSP 215

7311 Containers for compressed or liquefied gas, of iron or steel 1,643 0.0 160.0 136.0 1 3 88.5 Star 7302 Rrail, crossing piece, iron/steel 1,611 0.0 164.0 148.0 1 1 100.0 Emerging 7304 Tubes, pipes and hollow profiles, seamless, or iron or steel 1,334 0.0 2 3 91.4 7318 Iron & steel screws,bolts,nuts,coach-screws, etc 1,238 0.0 25.0 7.0 2 4 68.9 Star 7321 Iron & steel stoves,ranges,barbecues non-elec dom app. 970 0.0 90.0 73.0 2 2 100.0 Star 7312 Iron & steel strandd wire,ropes,cables, etc,not electrically insulated 904 0.0 2 4 84.6 7309 Iron&steel reservoirs,tanks,vats (cap >300l) 488 0.0 14.0 -11.0 1 1 83.6 Traditional 7301 Sheet piling, etc of iron/steel 254 0.0 1 1 100.0 7314 Cloth, grill, netting&fencing, of iron & steel wire 251 0.0 1 2 98.0 7324 Sanitary ware & parts thereof, of iron or steel 209 0.0 27.0 10.0 1 1 92.3 Emerging 7316 Anchors, grapnels and parts thereof, of iron or steel 167 0.0 -9.0 4.0 -38.0 1 0 86.8 Traditional 7305 Tubes&pipe nes, ext diam >406.4mm,of iron &steel 163 0.0 -2.0 -24.0 1 1 100.0 Traditional 7315 Chain and parts thereof, of iron or steel 76 0.0 0 0 100.0 7319 Iron & steel sewing/knitting needle& sim art for hand use 19 0.0 109.0 97.0 0 0 100.0 Emerging 7317 Nails, staples & sim art, iron & steel 18 0.0 0 0 100.0

SEBC/SSP 216

7322 Iron & steel radiators, air heaters&hot air distributors, etc. 1 0.0 0 0 100.0

Leading partners

World 117,319 1.0 38.0 17.0 39

France 42,220 36.0 35.0 15.0 19

Italy 40,615 34.6 49.0 21.0 14

Algeria 20,634 17.6 47.0 11

Spain 3,955 3.4 63.0 44.0 3

Morocco 2,036 1.7 36.0 4

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 74 Copper and articles thereof (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

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xpo

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(%

)

Gro

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v

alu

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(%

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Gro

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(%

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Gro

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No

of

pro

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cts

>

U

SD

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0.0

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No

of

ma

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ts

>

US

D 1

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000

Sh

are

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7400 All industries in sector 74 68,529 0.6 45.0 6.0 12 17 68.2 Star

7404 Copper waste and scrap 59,473 0.5 44.0 -7.0 1 14 72.2 Traditional 7403 Refined copper and copper alloys, unwrought 3,447 0.0 112.0 69.0 3 2 100.0 Star 7411 Copper tubes and pipes 2,485 0.0 65.0 32.0 2 3 98.9 Star 7410 Copper foil of a thickness not exceeding 0.15mm 1,174 0.0 1 1 100.0 7408 Copper wire 773 0.0 26.0 -18.0 2 3 99.2 Traditional 7413 Copper strandd wire,cables,plaitd bands, not elect insulatd 600 0.0 1 3 100.0 7419 Articles of copper nes 203 0.0 -21.0 -39.0 1 1 100.0 Traditional 7409 Copper plates, sheets and strips, of a thickness exceeding 0.15mm 174 0.0 18.0 -16.0 1 1 100.0 Traditional

SEBC/SSP 217

7415 Nail,tack, etc of copper or iron, with head of copper 103 0.0 0 0 100.0 7407 Copper bars, rods and profiles 44 0.0 148.0 112.0 0 0 100.0 Star 7412 Copper tube or pipe fittings 17 0.0 0 0 100.0 7418 Copper table, kitchen, household articles 14 0.0 0 0 100.0 7402 Unrefined copper; copper anodes for electrolytic refining 0 0.0 -53.0 -101.0 0 0 0.0 Traditional

Leading partners

World 68,529 0.6 45.0 12

Spain 24,036 35.1 229.0 3

Germany 16,088 23.5 32.0 4

Italy 6,641 9.7 1

France 5,425 7.9 14.0 7

China 4,800 7.0 81.0 1

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 84 Boilers, machinery, nuclear reactors, etc (2006, US$ 000)

Industry

Ex

po

rts

(U

S$

0

00

)

As

a s

ha

re o

f w

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(%)

Gro

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alu

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(%

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.a.)

Gro

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(%

p.a

.)

Gro

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No

of

pro

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>

U

SD

10

0.0

00

No

of

ma

rke

ts

>

US

D 1

00.

000

Sh

are

of

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mar

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s (%

)

Str

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ce

8400 All industries in sector 84 260,374 2.2 27.0 13.0 138 34 75.6 Emerging

8471 Automatic data processing machines;optical reader, etc 51,546 0.4 136.0 123.0 6 4 98.8 Emerging 8409 Part for use solely/principally with the motor engines 40,478 0.3 38.0 17.0 23.0 2 5 85.4 Emerging 8411 Turbo-jets, turbo-propellers and other gas turbines 23,008 0.2 5 8 79.8

SEBC/SSP 218

8421 Centrifuges, incl centrifugal dryers; filtering/purifying machinery 22,395 0.2 29.0 7.0 13.0 8 14 77.2 Emerging 8415 Air conditioning machines, with motor-driven elements 12,845 0.1 130.0 115.0 2 2 99.7 Emerging 8431 Machinery part (hd 84.25 to 84.30) 10,367 0.1 13.0 -7.0 6 6 90.2 Traditional 8481 Tap,cock,valve for pipe,tank for the like,incl pressure reducing valve 9,237 0.1 59.0 41.0 5 4 93.8 Star 8479 Machines&mech appl having indiv functions, nes 8,400 0.1 32.0 16.0 5 8 81.0 Emerging 8473 Parts&acces of computers & office machines 7,863 0.1 14.0 20.0 4.0 3 5 87.6 Emerging 8448 Auxiliary machinery (dobbie/jacquard parts), etc 6,846 0.1 0.0 3.0 -6.0 4 4 92.0 Snail 8407 Engines, spark-ignition reciprocating or rotary int. combust. Piston 6,497 0.1 10.0 2.0 2 2 99.6 Emerging 8414 Air, vacuum pumps; hoods incorp a fan 6,330 0.1 4 2 94.0 8413 Pumps for liquids; liquid elevators 5,767 0.0 49.0 33.0 3 4 92.0 Emerging 8480 Moulding boxe for met foundry;mould base; etc 5,460 0.0 37.0 29.0 4 5 89.3 Emerging 8438 Machinery, nes, for the ind preparation or mfr of food or drink 4,782 0.0 48.0 56.0 34.0 2 1 98.1 Emerging 8418 Refrigerator, freezer, etc 4,276 0.0 39.0 23.0 5 4 91.2 Emerging 8483 Transmission shafts&cranks, bearing housing; gearing; etc 4,131 0.0 -8.0 -12.0 -25.0 5 5 89.0 Traditional 8485 Machinery parts,not 2,970 0.0 39.0 25.0 2 3 96.0 Emerging

SEBC/SSP 219

containing elec connectors,coils,nes 8419 Machinery,plant/lab,involving a change of temp ex heating,cooking,etc 2,252 0.0 54.0 36.0 5 6 67.2 Star 8429 Self-propelld bulldozer, angledozer, grader, excavator,etc 2,152 0.0 59.0 34.0 4 5 76.8 Star 8477 Machinery for wrkg rbr/plas/ for the mfr of prod from these material 1,981 0.0 87.0 75.0 4 5 72.5 Emerging 8422 Dish washing machines; machinery for aerating bottles 1,868 0.0 39.0 25.0 3 3 88.3 Emerging 8433 Harvesting/threshing machinery,hay mower,etc 1,800 0.0 10.0 0.0 -5.0 1 1 100.0 Snail 8474 Machinery for sorting/screening/washg;agglomeratg/shapg mineral product 1,409 0.0 123.0 100.0 4 5 74.4 Star 8468 Machy&app for solderg,brazg (o/t those of hd 85.15) 1,297 0.0 301.0 286.0 1 1 100.0 Emerging 8424 Mechanical appl. for proj/dispersing/spray;sand blastg mach,etc 1,225 0.0 4 3 96.9 8452 Sewing machine (o/t hd no 84.04); furniture spec designd for sew machine 911 0.0 3 2 70.4 8406 Steam turbines and other vapour turbines 905 0.0 1 3 99.6 8466 Machinery parts&acces (machinery of hd 84.56 to 84.65) 904 0.0 35.0 19.0 2 1 95.7 Emerging 8453 Machinery for prepr,wrkg hide,leather/ 858 0.0 3 3 94.9

SEBC/SSP 220

reparing footwear

8436 Agricultural,hortic,forest,bee keeping machinery;poultry incubator etc 688 0.0 2 2 100.0 8451 Machinery nes,washing/clean/ironing/impreg tex yarn 687 0.0 -6.0 -16.0 4 2 78.5 Snail 8428 Lifting/handling/loading/unloadg machinery (excl. lift/escalator/conveyors),nes 652 0.0 2 2 92.6 8412 Engines and motors, nes 514 0.0 3 1 97.3 8439 Machinery for making pulp of fibrous cellulosic mat for mak/fin paper 512 0.0 217.0 204.0 1 1 99.8 Emerging 8423 Weighing machinery (excl balances of a sensitivity of 5 cg or better) 511 0.0 82.0 73.0 1 1 100.0 Emerging 8430 Moving/grading/scraping/boring machinery for earth 510 0.0 2 2 100.0 8465 Mach-tool for wrkg wood/cork/bone/hard rubber 509 0.0 56.0 44.0 1 2 97.4 Emerging 8443 Printing machinery; machines for uses ancillary to printing 419 0.0 26.0 14.0 1 1 90.9 Emerging 8455 Metal-rolling mills and rolls therefor 337 0.0 114.0 90.0 2 1 100.0 Star 8484 Gaskets & sim joints of met sheeting combined w/other material 315 0.0 2 1 83.5 8441 Machinery for mak up paper pulp, paper/paperbd, incl cut machines, nes 309 0.0 34.0 25.0 1 1 97.4 Emerging

SEBC/SSP 221

8467 Tool for working in the hand,pneumatic/with self-containd non-elec motor 301 0.0 -26.0 -42.0 1 0 54.5 Snail 8434 Milking machines and dairy machinery 272 0.0 1 1 100.0 8427 Fork-lift trucks;other works trucks fitted with lifting/handling equipm 270 0.0 1 1 90.4 8462 Machine-tool for wrkg met by forging/ hammerg,etc 265 0.0 13.0 -3.0 1 1 100.0 Snail 8408 Diesel or semi-diesel engines 261 0.0 -31.0 -53.0 1 1 98.9 Traditional 8425 Pulley tackle & hoists other than skip hoists; winches&capstans; jacks 261 0.0 1 1 100.0 8447 Knittg machine,stitch-bonding&mach for mak gimpd y/lace,etc 196 0.0 1.0 -6.0 0 0 93.4 Snail 8417 Industrial/laboratory furnaces&ovens, incl incinerators, non-electric 178 0.0 0 0 100.0 8482 Ball or roller bearings 153 0.0 0 0 92.8 8450 Household or laundry-type washing machines 133 0.0 0 1 100.0 8442 Machinery,app&equip for type-setting;printing type,plates 121 0.0 -20.0 -28.0 1 0 96.7 Snail 8402 Steam or vapour generatg boiler; super-heated water boiler 116 0.0 0 0 100.0 8420 Calandering/other rolling machinery 111 0.0 1 0 100.0 8463 Machine-tools for wrkg metal, nes sintered met carbd 91 0.0 0 0 100.0

SEBC/SSP 222

8432 Agricultural, hortic, forest machinery for soil prep/cultivation 59 0.0 0 0 100.0 8445 Machine for preparing textile fiber;spinning,twisting,windg mach 49 0.0 -18.0 -26.0 0 0 100.0 Snail 8403 Central heating boilers (other than 84.02) 49 0.0 0 0 100.0 8460 Machine-tool for deburring/grinding,etc 43 0.0 0 0 100.0 8444 Machines for extruding,drawing,text/cutting man-made textile materials 36 0.0 0 0 100.0 8472 Office machines, nes (e.g. hectograph/stencil duplicat) 31 0.0 48.0 37.0 0 0 100.0 Emerging 8461 Machine-tool for planing/shaping,etc sawing&other mach-tool for metal 30 0.0 0 0 100.0 8454 Converter,ladle,ingot moulds&casting mach,of a kind usd metal foundrie 25 0.0 26.0 -1.0 0 0 100.0 Traditional 8470 Calculatg mach;accountg mach,cash register,ticket-issuing 14 0.0 15.0 11.0 0 0 100.0 Emerging 8475 Machine for assg elec/electrn lamp;mach for wrkg glassware 10 0.0 0 0 100.0 8464 Machine-tool for working stone/ceramic 9 0.0 -45.0 -65.0 0 0 100.0 Traditional 8410 Hydraulic turbines, water wheels, and regulators thereof 9 0.0 0 0 100.0

SEBC/SSP 223

8437 Machines for cleaning/sort seed,grain;machinery usd in the milling industry 7 0.0 0 0 100.0 8440 Book-binding machinery including book sewing machines 6 0.0 -37.0 -52.0 0 0 100.0 Snail 8456 Mach-tool for removal of matrl by laser,photon beam,plasma arc proces 6 0.0 0 0 100.0 8457 Maching centre,unit const mach&multistation transfer mach for wrkg met 4 0.0 -33.0 -51.0 0 0 100.0 Traditional 8426 Derricks; cranes; straddle carriers,&works trucks fitted with a crane 2 0.0 0 0 100.0

Leading partners

World 260,374 2.2 27.0 138

France 131,898 50.7 29.0 11.0 62

Italy 45,621 17.5 33.0 38

Germany 19,425 7.5 18

Netherlands 10,689 4.1 27.0 5

Spain 10,147 3.9 72.0 6

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - (2006, US$ 000)

Industry

Ex

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(U

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0

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As

a s

ha

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(%)

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Sh

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of

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8500 All industries in sector 85

2,009,351 17.1 24.0 11.0 8.0 113 49 87.7 Emerging

8544 Insulated wire/cable 774,899 6.6 18.0 7.0 0.0 10 23 82.6 Star 8536 Electrical app for switchg (ex 380,321 3.2 23.0 16.0 7.0 9 29 91.0 Emerging

SEBC/SSP 224

fuse,switche,etc) not exceedg 1000 volt 8517 Electric app for line telephony,incl curr line system 156,923 1.3 95.0 22.0 87.0 4 9 98.2 Emerging 8504 Electric transformer,static converter (for example rectifiers) 114,968 1.0 11.0 4.0 -4.0 8 25 86.2 Snail 8538 Part suitable for use solely/princ with boards, panels, fuses, switches 107,907 0.9 32.0 40.0 16.0 2 8 94.6 Emerging 8542 Electronic integrated circuits and microassemblies 97,968 0.8 54.0 54.0 40.0 5 8 98.0 Emerging 8531 Electric sound/visual signallg app (e.g. bell/siren, fire alarms) 95,991 0.8 43.0 16.0 23.0 4 10 96.4 Star 8537 Board & panels, equipped with two/more switches, fuses 49,132 0.4 135.0 116.0 2 5 99.3 Star 8534 Printed circuits 37,269 0.3 19.0 2.0 1 10 79.2 Star 8501 Electric motors and generators (excluding generating sets) 30,899 0.3 136.0 123.0 5 4 99.2 Emerging 8511 Electrical ignition/starting equip (spark plugs/starter motors) 24,437 0.2 -2.0 0.0 -13.0 5 5 94.9 Snail 8516 Electric instantaneous water heater,space htg; hair dryer 13,899 0.1 15.0 4.0 5 5 96.6 Emerging 8539 Electric filament or discharge lamps 13,450 0.1 25.0 8.0 3 3 97.0 Star 8535 Electrical app for switching (ex fuse,switche,etc) exceeding 1000 volt 13,213 0.1 63.0 66.0 47.0 2 2 99.7 Emerging 8518 Microphones&stand;loudspeaker;headphone/earphone;s 12,260 0.1 21.0 5.0 8.0 5 6 89.2 Emerging

SEBC/SSP 225

ound amplifier set

8507 Electric accumulator 11,883 0.1 31.0 5.0 16.0 4 7 69.5 Emerging 8529 Part suitable for use solely/princ with televisions, recpt app 10,472 0.1 2 5 93.7 8513 Portable electric lamp designd to functn by batt/magn. 9,069 0.1 2 1 100.0 8533 Electrical resistor (incl rheostats),o/t heatg resistor 8,211 0.1 21.0 11.0 4 4 94.6 Emerging 8512 Electrical lighting/signalling equip,windscreen wipers,defrosters,etc 7,105 0.1 8.0 4.0 -5.0 2 2 96.8 Snail 8503 Parts suitable for use solely/princ with machines of hd no 85.01/85.02 6,917 0.1 1 2 98.6 8543 Electrical mach&app having individual function, nes 6,127 0.1 70.0 49.0 2 4 93.4 Star 8530 Electrical signallg/traffic control equip for rlwy/road (o/t hd 8608) 4,788 0.0 227.0 209.0 1 2 96.7 Star 8532 Electrical capacitors, fixed, variable or adjustable (pre-set) 4,423 0.0 26.0 16.0 17.0 3 3 96.4 Emerging 8547 Insulating fitting for elec mach,app/equip (o/t insulator of hd no85.46) 3,053 0.0 50.0 81.0 37.0 1 3 96.8 Emerging 8505 Electro-magnets;permanent magnets;magnetic chucks;etc 2,220 0.0 3.0 -8.0 1 1 100.0 Snail 8541 Diodes/transistors semiconductor devices; etc 2,067 0.0 88.0 67.0 5 3 97.7 Star

SEBC/SSP 226

8526 Radar apparatus, radio navigational app&radio remote control apparatus 1,556 0.0 64.0 38.0 2 1 96.3 Star 8525 Television camera, transmissn app for radio-telephony 1,548 0.0 54.0 29.0 1 3 90.1 Star 8548 Electrical parts of machinery/app, nes 1,312 0.0 1 1 100.0 8528 Television receivers (incl video monitors & video projectors) 1,276 0.0 1 1 100.0 8515 Electric,laser/photon beam/plasma arc solderg with cut capabilitie,etc 738 0.0 37.0 19.0 4 3 82.7 Star 8506 Primary cells and primary batteries 708 0.0 20.0 12.0 3 3 87.0 Emerging 8524 Recorded tape, recorded for sound 612 0.0 84.0 77.0 1 3 80.7 Emerging 8545 Carbon electrodes / brushes / lamp carbons 301 0.0 1 1 100.0 8514 Industrial/laboratory elec furnaces&ovens 125 0.0 1 1 100.0 8546 Electrical insulators of any material 100 0.0 63.0 54.0 0 0 100.0 Emerging 8523 Prepared unrecordd media for sound record (tapes) 88 0.0 0 0 100.0 8540 Thermionic,cold cathode valves&tube (e.g. tv camera tubes) 75 0.0 0 0 100.0 8509 Electro-mechanical domestic appliance,with self-containd electric motor 54 0.0 -9.0 -21.0 0 0 96.3 Snail 8522 Parts and accessories of video, 36 0.0 0 0 100.0

SEBC/SSP 227

magnetic recorder

8527 Reception app for radio-telephony/radio-broadcastg 28 0.0 0 0 100.0 8502 Electric generating sets and rotary converters 24 0.0 0.0 -24.0 0 0 100.0 Traditional 8508 Electro-mechanical tool for working in the hand,with self-contd elec-motor 20 0.0 0 0 100.0 8520 Magnetc tape recorder & sound rec app 6 0.0 0 0 100.0 8521 Video recording or reproducing apparatus 3 0.0 0 0 100.0

Leading partners

World 2,009,3

51 17.1 24.0 11.0 113

France 1,064,1

51 53.0 32.0 18.0 74

Germany 476,675 23.7 18.0 2.0 40

Italy 220,770 11.0 21.0 21.0 40

Poland 59,816 3.0 25.0 3.0 10

Spain 41,083 2.0 17.0 7.0 11

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports -87 Vehicles, other than railway and tramway (2006, US$ 000)

Industry

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(US

$ 00

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As

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8700 All industries in sector 87 241,048 2.1 19.0 7.0 7.0 33 24 77.4 Emerging

8708 Parts & access of motor vehicles 189,471 1.6 17.0 6.0 3.0 12 18 87.2 Emerging 8716 Trailers&semi-trailers;other vehicles not mechanically propelled 17,037 0.1 65.0 41.0 4 2 99.9 Star

SEBC/SSP 228

8712 Bicycles & other cycles, not motorised 16,179 0.1 13.0 0.0 0.0 1 7 82.7 Emerging 8714 Parts and accessories of motorcycles & cycles 8,220 0.1 31.0 20.0 4 3 98.5 Emerging 8704 Trucks, motor vehicles for the transport of goods 6,071 0.1 136.0 123.0 4 2 99.7 Emerging 8703 Cars (incl. station wagon) 1,372 0.0 13.0 1.0 4 2 56.5 Emerging 8707 Bodies for motor vehicles 979 0.0 207.0 186.0 1 1 100.0 Star 8701 Tractors (other than tractors of heading no 87.09) 976 0.0 1 2 100.0 8711 Motorcycles, side-cars 346 0.0 1 2 98.6 8702 Public-transport type passenger motor vehicles 202 0.0 1 1 100.0 8706 Chassi fitted with engine for motor vehicles 80 0.0 0 0 100.0 8709 Work truck,self-propeled, for factorie/airport & parts 63 0.0 0 0 100.0

Leading partners

World 241,048 2.1 19.0 7.0 33

France 131,586 54.6 14.0 7.0 20

Germany 33,340 13.8 23.0 5

Algeria 21,639 9.0 139.0 14

Italy 16,477 6.8 14.0 10.0 6

Spain 13,550 5.6 33.0 2

Exchange rates: US$

1.00 = € 0.797 US$ 1.00 =

SP 54.211

Tunisia's Exports - Optical, photo, technical, medical, etc, apparatus (2006, US$ 000)

Industry

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(US

$ 00

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9000 All industries in 156,434 1.3 30.0 16.0 13.0 42 22 78.9 Star

SEBC/SSP 229

sector 90

9018 Electro-medical apparatus (electro-cardiographs, infra-red ray app, syringes, dental 61,738 0.5 45.0 31.0 31.0 6 8 96.8 Emerging 9032 Automatic regulating or controlling instruments and apparatus 33,516 0.3 24.0 3.0 10.0 4 5 97.7 Emerging 9028 Gas/ liquid/ electricity supply/production meter 21,527 0.2 117.0 106.0 2 4 98.3 Emerging 9026 Instruments for measuring/checking the flow/level/pressure of liq/gases 13,307 0.1 83.0 65.0 3 4 96.9 Star 9021 Orthopaedic appliance (crutche/surgical belts & trusse) 7,389 0.1 38.0 0.0 16.0 4 5 92.1 Star 9013 Liquid crystal devices; lasers; other optical appl & instruments nes 4,533 0.0 1 2 98.9 9029 Revolution counters/taximeters; speed indicators/tachometers 3,246 0.0 1 1 100.0 9031 Measuring or checking machines, nes 2,820 0.0 26.0 10.0 4 5 72.6 Emerging 9014 Direction finding compasses; other navigational instruments & appliances 2,240 0.0 2 3 98.2 9019 Mechano-therapy appliance (artif resp, massage app, ozon/oxygen) 866 0.0 20.0 4.0 2 2 89.8 Emerging 9030 Oscilloscope/ spectrum analysers; instr for measuring ionising rad 767 0.0 1 2 93.6

SEBC/SSP 230

9017 Drawing, marking-out / mathematical calculating inst 682 0.0 51.0 40.0 2 1 91.3 Emerging 9015 Surveying, hydrographic,oceanographic,meteorological instruments 501 0.0 1 1 94.0 9022 Apparatus based on the use of X-rays/of alpha, beta/gamma radiations 405 0.0 1 2 98.8 9027 Instruments for physical/chemical analysis;inst for viscosity,heat,etc 405 0.0 1 1 75.3 9001 Optical fibre, cables; sheets&plate of polarising mat 385 0.0 55.0 35.0 1 1 92.5 Star 9025 Hydrometers&similar floating inst, thermometers, etc 370 0.0 40.0 27.0 1 1 99.7 Emerging 9024 Machines for testing the hardnes /strength 349 0.0 80.0 68.0 1 1 99.4 Emerging 9004 Spectacles, goggles and the like, corrective, protective or other 277 0.0 1 1 93.5 9020 Other breathing appliance & gas masks 263 0.0 69.0 53.0 1 1 100.0 Emerging 9033 Parts&accessorie for machines of chap 90, nes 258 0.0 138.0 132.0 1 1 97.3 Emerging 9006 Photographic camera;photograph flashlight app 206 0.0 1 1 100.0 9023 Instruments, apparatus & models, designed for demonstrational purposes 26 0.0 90.0 78.0 0 0 100.0 Emerging 9009 Photo-copying & thermo- 26 0.0 19.0 7.0 0 0 100.0 Emerging

SEBC/SSP 231

copying apparatus

9003 Frames&mountings for spectacles, goggles 21 0.0 0 0 100.0 9002 Lenses, prisms, mirrors & other optical elements,of any material,mounted 4 0.0 0 0 100.0

Leading partners

World 156,434 1.3 30.0 16.0 42

France 91,836 58.7 32.0 13.0 23 Italy 18,767 12.0 60.0 12 Algeria 12,798 8.2 323.0 1 United Kingdom 8,976 5.7 4 Spain 8,351 5.3 84.0 4

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

Tunisia's Exports - 94 Furniture, lighting, signs, prefabricated buildings (2006, US$ 000)

Industry

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(U

S$

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)

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9400 All industries in sector 94 111,820 1.0 16.0 7.0 3.0 32 15 83.2 Emerging

9401 Seat (o/t dentists' & barbers' chairs, etc), ∂ thereof 63,150 0.5 20.0 9.0 7.0 8 7 96.6 Emerging 9403 Other furniture and parts thereof 24,515 0.2 10.0 -5.0 -2.0 9 11 88.3 Snail 9405 Lamps & lighting fittings nes; signs, nameplates illuminated 12,660 0.1 2.0 -10.0 8 9 74.0 Snail 9406 Prefabricated buildings 5,562 0.0 113.0 94.0 1 3 99.8 Star 9404 Mattress supports; mattresses,quilts, etc 4,971 0.0 32.0 22.0 12.0 4 4 93.3 Star

SEBC/SSP 232

9402 Med, surg, dental furniture (e.g. dentists' & barbers' chairs) 914 0.0 44.0 49.0 30.0 2 2 100.0 Emerging

Leading partners

World 111,820 1.0 16.0 7.0 32

France 79,924 71.5 14.0 1.0 19

Italy 7,767 6.9 25.0 4.0 7

Algeria 5,311 4.7 113.0 6

Germany 4,773 4.3 35.0 5

Spain 3,781 3.4 113.0 3

Exchange rates: US$

1.00 = € 0.797

US$ 1.00 = SP

54.211

SEBC/SSP 233

Appendix G

Energy Conservation and Private Sector involvement in Electricity Generation

Although this note focuses on the provision of electricity, it is possible that the same methodology, can be apply to water and to industrial land and perhaps to other utilities that are subsidised by Government and is amenable to private sector provision. The challenges

The Government of Syria faces two separate challenges with regard to the provision of electricity; namely: 1. the first challenge relates to the pricing of electricity;

- Because of past policy directives, the price of electricity to consumers is heavily subsidised, well below the cost of providing the electricity.

- Consumers seem to see the subsidy as a role for Government, not a cost that they all bear. Hence, politically, it seems to be difficult for Government to reduce or remove the subsidy.

2. the second challenge relates to the usage and waste of energy;

- Consumers tend to waste electricity or, at least, are not encouraged either to carry out energy saving routines or to install energy saving devices because the price that they pay is so low.

3. the third challenge relates to the involvement of the private sector in the provision of electricity in order to save the Government from the capital costs investing in new power generating plants;

- Because the end-use price has a subsidy element, the private sector is not able to invest profitably in the provision of the utilities and so look to the Government to pay a full economic price plus profit to them for generating electricity.

- This would mean that the Government, on the one hand, is paying a

higher price for electricity (because of the profit element) and continuing the subsidy to consumers on the other hand - this is a high price to pay to avoid the up-front capital costs of building additional power stations.

Unfortunately, the situation is untenable, as it stands, because the subsidies result in wastage and extravagant use of electricity, which results in excess demand and the need to build further power stations (as with other utilities: water desalination plants and industrial estates). Failure to build the assets, only results in recriminations by companies and individuals who fail to see the true economic problem and see no reason why they should change their extravagant ways.

What is not the way forward is for the Government to:

a. spend more money on public awareness campaigns to educate people on the importance of conservation; - Such campaigns will be costly and unlikely to create sufficient effect to

alter the basic problem of continuing ever increasing subsidies and

SEBC/SSP 234

wastage, and of the public’s expectation that is the role of Government to provide more electricity, and other utilities.

b. simply to remove the subsidies; - This will only alienate the public who have been used to, and see the

role of the Government as the provider of low-cost utilities. Obviously, eventually such an initiate will result in lower usage and enable the private sector to provide the utilities. However, in other countries such initiatives have, in the first instance, lead to riots and the fall of governments at general elections - but even in those countries, the new government has eventually to take the initiative of removing the subsidies.

c. agree with private utility companies to pay them an economic price, whilst continuing to provide the electricity and other utilities at a subsidised price; - This approach, whilst overcoming shortages in the short term, creates

further demand and additional difficulties for the future.

The way forward

Rather the way forward would seem to be:

1. Calculate the economic price to produce electricity in the Country plus a reasonable profit margin, which would encourage investment. The sum of the economic price and the profit margin would be called the realistic price. There may be different realistic prices calculated for bulk users, light users and private households.

2. For each consumer, calculate the amount of subsidy by subtracting the actual price charged from the realistic price.

3. Show in consumer electricity bills, the amount of the subsidy being provided by the Government;

- This stage is very simple, - The bill should show the realistic price with the amount of subsidy

needed to bring the bill down to the actual charge. - In this way, the Government is educating people and reminding them

each time that they pay their bills of the subsidy being provided by their Government.

4. Transform the subsidy into a fixed cash amount, regardless of the units consumed for each year for coming five years. The cash amount would be calculated as the difference between the realistic price and the subsidised price as calculated in the bills in a selected base year (for example, the 12 months just gone by).

5. The Electricity producing companies and the State Electricity Corporation would then charge consumers the realistic price.

6. A special government office would send to consumers the subsidy, which has been calculated for them. Each year, the consumers would receive the same amount. If electricity bills are normally sent out monthly, then a twelfth of the subsidy would be sent out each month.

7. Possibly, the subsidy payment could be made through banks or other government offices upon presentation of an electricity bill and proof of identity. Once the subsidy has been paid the electricity bill would be marked. Very heavy fines could be introduced for fraud.

8. A guarantee could be given that if the actual amount of electricity used by a consumer has to rise for a reason beyond his control or because of a development (for example, due to an extension added to the house or to an

SEBC/SSP 235

expansion of the business’s operations) during the five-year period, then the subsidy would rise by the same percentage;

- This should mean that consumers would realise that they will not be

worse off due to external factors during the coming five years and, therefore, there should not be hostile reaction to the scheme;

- The Government could promise that the subsidy would not be totally removed after the five-year period, but possibly reduced by 10%, or 25% or 50%. The Government could give special considerations for, say, the less well off, so that different groups of consumers could have different deductions in the subsidy.

- Providing an increase in the subsidy to those who need to use more electricity would not make the Government worse off, because it would have had to pay the extra subsidy without the scheme.

Further details

When these initiatives have been taken it is possible that two results may occur:

1. Very quickly consumers will see that if they waste less, then they will actually save money as the subsidy is fixed, regardless of the amount of electricity they use; - Under this scheme, the Government will not save money in the fist five

years because the amount of subsidy will be fixed. However, possibly the demand for further electricity will be curbed by consumers trying to save money and, so, the pressure on the Government to build additional power plants will subside.

2. The interest of the private sector in building power stations or possibly buying

existing ones from the Government may be aroused; - If consumers are paying the full price and are receiving, at the same

time, a separate subsidy from the Government, then private electricity providers can supply the electricity to the consumers at an economic price, whilst the Government continues to provide the subsidy,

- Under this scenario, in order that the generating companies need not set up their own distribution networks, a further scheme has to be put in place to enable private sector power providers to supply consumers through the existing power distribution system - this is discussed below,

- It is probable that, in the first instance, the private electricity generators would sell their electricity through the national distribution network only to larger, corporate users and not to private homes. This would be to simplify the setting up of their marketing and sales system. Hence, the Government, through its Electricity Corporation, would continue to sell electricity directly to consumers (companies and homes) who are not supplied by private generators. Even so the Electricity Corporation can still undertake the scheme mentioned above.

In order to enable the private sector to enter into the generation of electricity, under the scheme mentioned above, certain other initiatives would need to be in place: 1. A generator of electricity would be able to sell to a consumer directly through

the national electricity transmission network. This implies that the generating company would pay the transmission network company (at first, this would

SEBC/SSP 236

remain Government owned and within the Electricity Corporation) to transmit the electricity to the consumer:

- Hence, a system of charging for the transmission of electricity by the

Electricity Corporation would need to be established, - It would need to be at a reasonable but economic price, as it would be

important that, in the entire system, the only subsidy element was the subsidy to the final consumer.

Depending on the type of power generating equipment, the generator would

probably be either generating for bulk loads or for peak loads:

- Hence, the generator would need to buy in electricity in order to meet the peaks in consumer demand and to sell electricity possibly to other producers during troughs in demand;

- In the first instance, the Government, through the Electricity Corporation, would need to be both a seller and buyer of electricity - selling electricity to the generating companies for them to meet peak demand from their consumers and, possibly, buying electricity during periods of low demand;

- Again, the trading in electricity would need to be undertaken at economic prices. It will be important that no subsidy element by the Government is provided in such deals.

Probably, a private investor may well set up, from the outset, a number of

plants, for example: an oil-fired power station for bulk demand; a gas turbine station for peak demand; and a water desalination plant or deep well water pumping plant in order to utilise the bulk electricity produced when demand falls below certain critical amounts;

(Possibly, an alternative way to generate peak demand electricity and use surplus bulk produced electricity is to construct an underground pump-storage scheme. This scheme can only be constructed in hilly areas of impervious rock. Two underground reservoirs are constructed, one low down and the other high up inside a hill (the reservoir have to be underground in order to reduce evaporation). During high electricity demand periods, water is fed in pipes down from the higher reservoir through hydro-turbines to generate electricity to the lower reservoir. During periods of low electricity demand, water from the lower reservoir is pumped up to the top reservoir in order to be ready for the next period of peak demand.) - if an investor sets up an array of power generating stations, then he

would become self-supporting and need not regularly buy electricity in to meet his customers demand, though he may still become a seller or buyer in periods of unexpectedly low or high demand. Therefore, it is important to have the system for the trading of electricity in place.

Benefits of the Scheme

This methodology has the advantage over the Government simply buying electricity from private suppliers in that:

at the same time, there is a built in stimulus for consumers to conserve electricity.

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even though for the first five years, and possibly beyond, the price for which the generating companies can sell their electricity is fixed; they can improve their efficiency and, thereby, increase their profits. By improving their efficiency, they will use less oil and gas and so conserve a finite resource - the major resource of Syria.

however, gradually, a commercial environment is built up whereby the private sector can generate, distribute and sell electricity, enabling the Government to withdraw from the activity, but remain monitoring activities, ensuring fairness for consumers and competition between the generating companies;

- after the first five years, or possibly a little longer, providing that enough private sector suppliers have entered into generating electricity, it will be possible to allow the generators to compete amongst themselves for customers. In this way, competition will, hopefully reduce the prices of electricity,

- it is unlikely that the electricity producers will want to sell electricity directly to private households and small commercial users (shops, etc). To supply these, other companies may emerge or could be encouraged to emerge. These companies would buy electricity in bulk from the producers and sell-on the electricity to households and small companies. That they would maintain and repair the electricity connections from the supply transmission network to the point of consumption (the house or company premises), install connections for new customers, and bill consumers for electricity consumed.

- Hence, the Government would be left with the electricity transmission network for which they would receive a user-charge from the electricity generating companies, and the Government would be left with the role of ensuring no anti-monopolistic activities and no exploitation of consumers.

Associated factors

1. The administration of supplying consumers with electricity While the Electricity Corporation is involved with the provision of the electricity connections between the transmission network and the individual consumers, they will have the task of cutting off households and companies, which fail to pay their electricity bills.

Upon first thought, this may seem to be an unenviable task, really doing somebody else’s dirty work. However, most of the reasons for non-payment will not be because of a problem of supply and, hence, the reason for non-payment will not be because of anything that the electricity generation company may have failed to do (if, for example, the company’s generating station failed or they suffered a labour dispute, then they could always buy the electricity from other producers). Hence, the reasons are likely to be:

i. either a dispute about the connection which, in the first instance, will be with the Electricity Corporation, at least until there are private companies providing the connection;

ii. or, a legitimate case of financial hardship, which would only apply to private households.

Hence, it would seem reasonable for the Electricity Corporation (while it is the company providing the connection between the consumer and the transmission network) to

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always undertake to pay the bills of the consumers, which are due to the electricity producer if the consumer is, say, more than one month late and is claiming one of the above.

2. Determining an economic price for electricity and how to allow for price escalation

Determining an initial economic price for electricity is not such a hard task. However, deciding upon a fair and equitable means for price escalation for the future in a monopoly situation, which is bound to exist in the first instance, is not so easy.

a. An economic price for electricity

Carrying out an economic feasibility study for electricity generation in Syria will provide that economic price. Most cost elements are fixed except for the input price of fuel and the profit margin required. The findings can be verified with examples from countries where a free market exists for electricity generation, for example the USA and to a lesser extent the UK (in the UK, it is basically a duopoly plus government owned nuclear power, and heavy government supervision). The price of fuel that would be offered can be obtained from the Ministry of Energy. The profit margin earned by private producers in other countries would give a guide to the profit margin expected from producing electricity in Syria. b. Price escalation

Deciding the best means of allowing for price escalation is more difficult. It is important because under a monopoly situation, the Government does not want the companies to abuse their monopolistic situation, yet there needs to be a fair method to allow for cost inflation. There are basically two methods used:

i. Return on capital employed: this method requires the monopolist producer to provide information about his capital and his profits (revenue minus allowable costs). A return on his capital is agreed which can be reviewed in the light of movements in interest rates, exchange rates and, possibly, returns made by similar businesses in other countries of the World. The price that the producer is allowed to charge is one, which allows him to make the agreed return on his capital employed.

- There is a problem with this method; that is the method encourages the producer to spend as much on capital as possible, as this will enhance his return and the absolute levels of his profit. Also it may mean that he under-gears the company (he borrows too little and provides more equity than needed). The effect is that a higher than need be return on capital employed is agreed, which is to the detriment of the Country

ii. Price escalation: this method requires the monopolist producer to provide information about his allowable costs and revenue. A mark-up for profit can be agreed for the base year, which can be compared with mark-ups enjoyed by similar businesses in other countries of the World. Then, each subsequent year, the producer is allowed to raise prices by the rate of inflation (possibly the rate of increase in consumer prices) less an agreed amount for improvements in technology (factor X). What an acceptable value for factor X might be, can be obtained by looking at similar agreements arrived at in other countries of the World;

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- This method has the advantage that the monopolist producer cannot so easily cheat as with the return on capital employed method and he is encouraged to operate as efficiently as possible and introduce the latest technologies;

- The factor X can be reviewed every five or so years in order to take into account changes in technology.

Consumers tend to prefer the latter method as it ensures that prices do not rise faster than inflation. Companies wanting an easy life with an assured level of profits, with pension funds as their major shareholders, tend to prefer the first method, while aggressive companies with more private individuals as shareholders tend to prefer the second method.

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Appendix H

Notes on the proposed new institutions mentioned in the Executive Reform Plan (2008-2010)

The initiatives mentioned’ specifically in Executive Reform Plan are: An Industrial Modernisation Centre An Export Promotion Centre An Export Processing Zones An Industrial Development Fund which would be set up, together with: An Industrial Development Council. Below are comments on each of the above and, in additional, a further institution An Export Credit Insurance Brokerage which would be very important for an export led development. In Appendix I, the potential for leasing, especially industrial premises is discussed. i. Industrial Development Council The fundamental role of the Council will be to develop a National industrial development policy framework and to formulate the strategy and implementation programme for Government in its role of supporting and facilitating industrial development.

A Council is only as good as the support and information and ideas it receives and, therefore, needs a good secretariat which can stimulate discussions and initiate the agenda.

The secretariat needs the authority to request and obtain information and reports from all parts of the Government and have its own resources to prepare briefs and policy reviews for the Council to consider.

To be effective the Council needs to be under the chairmanship of a very senior person who has the authority to ensure that the decisions of the Council are carried out. In many other countries, the Council is under the President or Prime Minister*63.

The Council should not be too large; others who may have a role in the promotion of investment can always be invited to attend meetings on an ad-hoc basis.

Ideally, the Council should include both government and the private sector and have some experts which either are members or who can be called on a regular basis to advise the Council. One or more advisers need not be Syrian and can bring knowledge of the experience of other countries to the Council.

*63 For instance, the Sudan is presently setting up a Higher Council for Investment under

the President with the Ministry for Investment as his deputy. There is also to be a strong Secretariat with day-to-day operational links to the Ministry of Investment as well as links through the Minister for Investment.

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Perhaps, an Industrial Development Council is too limited a remit and the Council should be for all investment in any sector and so called an “Investment & Development Council”.

ii. Industrial Modernisation Centre

Many initiatives, which may be the correct initiatives, are too small scale to be really worthwhile. Syria is a large country and any single modernisation centre would be totally inadequate. Probably even ten centres would be inadequate.

It is said that a picture is worth a thousand words. If that is true then a live event must be worth far more. Advisers, consultants have their place, but industry is a hands-on activity, running 24 hours a day, 365 days a year. One cannot learn entrepreneurship or the management of an enterprise from a class-room or by reading a manual.

A possible way forward is to gain the agreement of existing enterprises, which are deemed to have good work practices to permit others, in an organised way, to view their factories in order to understand how the systems and procedures work and to look at their accounts to see how the recordings are made. The visits can be guided tours led by a consultant and the factory’s owner can also participate and explain how and why he decided to set up the factories and its operations, systems and procedures in the way he did.

Also what is most important is for the entrepreneur to explain to others how he trains the staff and motivates them, how he ensures quality and promotes an appreciation of quality in the products made and in the work they do, and how through information systems he can monitor the operations and make timely interventions to ensure that problems are overcome before they become serious.

Also, individual entrepreneurs can be helped, on the understanding that they pay for the assistance by permitting their factories to become “modernisation centres” and allow other entrepreneurs to visit and see the “best practice” in action. Of course, such a scheme would not require the enterprise, in becoming a “modernisation centre”, to be open for visitors the whole time. Probably once a week for a couple of hours would be sufficient.

In this way, an ever increasing number of “modernisation centres” can be created in different sectors showing “best practice”. iii. The Export Processing Zones

The crucial advantage of export processing zones is that they become the effective point of entry for imported materials and equipment into the country. Goods destined for export processing zones should arrive at the Syrian border in sealed containers and should be permitted entry without inspection and allowed immediate transport to the export processing zone. Any customs inspection should take place in the zone.

Ideally, factories which may exist outside of zones should be able to become export processing factories and enjoy the same advantages as a zone. This is important for enterprises which are already established and are already exporters or who are progressively becoming exporters.

A major incentive to exporters would be permission to delay payment on any duties or charges till the day that the processed good is exported, or, possibly, one month after export. This would reduce working capital requirements and become an incentive.

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Although factories may be located on export processing zones or are export processing factories, they should be permitted to sell to the domestic market. Again, it would be an incentive to only pay any duty on the materials once the manufactured good is delivered to the domestic market. The payment of duty could be based on a simple arithmetic calculation based on the value of imported materials used in the manufacture of a single item. Then payment is based on the duty relating to that value times the number of items delivered to the domestic market.

Many Syrians, both local and expatriate do have money. They could be interested in investing in Syria, but are not entrepreneurs. However, they may feel comfortable in investing in real estate. Hence, the ownership of the export processing zones should be set up as funds, or possible floated on the new stock exchange as companies and Syrians and foreigners should be invited to invest in the stock of each zone. In this way, the cost of setting up the zones passes from Government to the private sector.

Many would-be investors and entrepreneurs and especially foreign companies are reluctant to commit large sums of money into infrastructure and buildings. If the zones were to offer factories for rent, then this would be an incentive to industrialists, especially foreigners who may feel less nervous when the financial commitment of setting up a project is limited. This would also be a way to increase the Syrian involvement in industrial development. iv. The Industrial Development Fund Firstly, there is no reason why this fund should only be for industry, even though manufacturing may be a main beneficiary. Secondly, there should be two sides to the Fund, or two funds. One would be an equity fund and the other a long-term loan fund.

An Equity Fund

An equity fund is most important to enable entrepreneurs who lack capital to set up their ventures. As an equity partner, the Fund should have access to the books of account, a seat on the board and although the entrepreneur is expected to run the enterprise, the director from the Fund who is sitting on the board of the enterprise is there to monitor the actions of the entrepreneur and to advise and guide.

The Fund would not have invested if the Fund’s management had not thought that the venture was a good idea and the entrepreneur was not capable of running the enterprise. Hence, interventions by the Fund’s director would normally be constructive and supportive. Normally, the equity involvement by the Fund would be small, say 10% to 20% of the total money needed to set up the venture (25% to 49% of the equity). The idea of the Fund is to give an entrepreneur confidence to risk his own money and to attract others to invest. Also banks should be more willing to lend, knowing that the Fund has reviewed the project and was willing to risk their money.

Again, there are probably sufficient numbers of local and expatriate Syrians and foreign individuals who may be willing to invest in such a Fund, but would not be willing (or too scared) to invest directly in a project. So Government’s role may need only to be a catalyst in setting up the Fund rather than an actual investor.

There are international financial funds and agencies which provide grants, loans and technical assistance to developing countries. The Kuwait Fund, the Arab Fund, the Islamic Development Bank, the European Commission, the World Bank, to name just a few. One of these funds or agencies may well be interested in supporting the Fund

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with a further grant for technical assistance. This would enable the Equity Fund to take on a more supportive role where the entrepreneur may have a good idea but needs much more intensive support than a board director can give. It may also enable the Fund to take up an equity position in a company in trouble, but which still has a good potential, though would need intensive hands-on assistance to steer the venture into solvency. This scheme would create a “Business Angel” concept.

Long-term Loan Fund

Few banks have access to long-term funds to on-lend to industry. However, industry needs long-term money because it may take time for a new venture to be able to earn sufficient to pay back the loans.

A long-term loan fund should not be an alternative to banks, but should support banks by lending to them with the condition that the money is on-lent to industry on equal durations and with a constrained mark-up.

The repayment conditions could be varied according to the type of entrepreneur. A condition could be that the loans are only granted to applicants who have accepted the Equity Fund as a partner. In this way, the project will have been studied and found by the Fund to be an acceptable risk.

If the applicant were a foreign investor, then the risk on the loan would be entirely the commercial bank’s risk. However, if the investor was Syrian and investing in a decentralised location, risk could be shared, for instance, 50:50 with the lending bank.

Again, there may well be investors interested in investing in the Fund and so the Government may need only to be a catalyst in setting up the Fund.

What is vital with long-term finance is that the loan is in Syrian Pounds and not any other currency. This is to safeguard the entrepreneur from currency exchange rate changes which are beyond his capability to manage and possibly to understand. Again, if there is involvement at director level by one or more international financial institution (IFI), it would probably be possible to raise the necessary funds in Syrian pounds for on-lending from private investors. If this was not the case then some IFIs are willing to guarantee local money raised; that they are assuming responsibility for the money as if it were their own. In this way, even if some of the lending turns out to be bad debt, the investors in Syrian pounds are not at risk.

v. Another Initiative: An Export Credit Insurance Brokerage

There are a number of possible incentives and technical assistance initiatives which would be important; one is the creation of an export credit insurance brokerage.

Buyers normally expect to receive credit terms in return for buying a product. It is fairly standard in developed countries and in Arabia. In almost all countries, governments expect generous credit terms when buying capital equipment.

Small and medium sized companies often cannot fund credit terms for their buyers and so have to resort to credit insurers who take up the risk whether or not the buyer will pay. Only if the exporter is lucky enough to have a product that is in heavy demand, would he be able to require the buyer to open a confirmed letter of credit though even then he may permit the letter of credit to be extended in order to give the buyer a grace period. Either way, the exporter can use the insurance policy or the confirmed letter of credit as collateral to receive an advance payment from his bank. However, most products are not in such demand that the exporter can request a letter of credit; that is unless he offers such generous discounts in return for the letter of

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credit. The letter of credit is normally disliked by buyers because even if it has extended terms, the buyer’s bank will require collateral or block money immediately it is drawn up. If unconfirmed, the entire risk of non-payment is on the shoulders of the exporter. Hence, credit insurance has an important role in enhancing the product offered by an exporter; that is, enabling the exporter to offer the product together with credit terms.

In order to assist Syrian exporters an effective export credit insurance brokerage is important. There is a distinct difference between an export credit insurance broker and an insurer or insurance agent. A broker acts for the exporter and attempts to find him the best policy from various insurers. An insurer underwrites the risk that the buyer will not pay and issues the policy; an agent is simply the insurer’s marketing arm.

All insurers will have a large database of good and bad buyers in various countries of the World. He also will have detailed information on the risk that a country may lack the foreign currency to enable the buyer to pay the debt. New insurers will inevitable have to be associated with one or more of the well-established insurers in order to be able to access their database.

There are many insurers throughout the World – in France, Coface; in the UK and Holland, Atradius; in Germany, Hermes; in Belgium, OND, etc. The Islamic Development Bank also provides export credit insurance through the Islamic Corporation for the insurance of Investments and Export Credit (ICIEC). Several neighbouring countries also have their own credit insurers for instance: Turkey, Lebanon, Jordan, Egypt, and Tunisia*64.

Unfortunately, most of the neighbouring credit insurers are not effective, mainly because they lack or do not pay sufficient attention to marketing the policies. Hence, exporters either do not know of the product or a scared to offer credit in case they cannot obtain insurance. Even the ICIEC lacks good marketing. The ICIEC has an agent in Syria, but he is a general insurance agent and credit insurance requires far more hand-holding of the customer than taking out building or car insurance and so is not effective.

The Oman development Bank set up its own export credit insurance company, the Export Credit Guarantee Agency, because Saudi buyers of Omani goods always demanded credit which has turned out to be particularly successful, at least to date. The Lebanese and Tunisian agencies have also proved to be effective and profitable.

But notwithstanding the poor experience of some of the credit insurance in the region, or perhaps because of it, Syria would have a comparative advantage competing with exporters from neighbouring countries if it possessed an effective credit insurance broker. Actually, it should be possible to encourage the setting up of several brokerages as each major industrial centre should have brokers or representatives of brokers present.

Many export credit insurers would be willing to assist in training a broker because, to them, it would be a small investment in gaining the opportunity to quote for new business.

In the scheme, the exporter in Syria and the Syrian/Middle East economic/political situation is irrelevant. What is relevant is only the risk of the buyer and his country’s

*64 The Export Credit Insurers are: Turkey – Eximbank; Lebanon – Compagnie Libanaise

pour la Protection du Credit; Jordan – the Jordan Loan Guarantee Corporation; Egypt – The Export Credit Guarantee Corporation of Egypt; Tunisia – Contunace.

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risk. Most of the major insurers have large databases of Middle Eastern buyers and the ICIEC, in particular, may be able to insure buyers in Arab countries which are off-limits to most other insurers.

There is a further possible development to credit insurance and that is domestic credit insurance. Most of the large credit insurers also provide domestic credit insurance in OECD countries. However, generally, large companies (and especially governments) in every country expect to be given credit terms and if local smaller enterprises cannot, the larger companies turn to suppliers from abroad. Therefore, in order to assist smaller companies in selling to large companies, the credit insurers underwrite the credit terms and the policies can then be used as collateral for the small companies to receive payment immediately.

However for this to happen, much better knowledge is usually required of domestic buyers. Jordan is currently looking into the feasibility of setting up a Credit Bureau to improve the knowledge of the creditworthiness of Jordanian companies and enable domestic credit to be insured.

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Appendix I

The Potential for Leasing Operations in Syria 1. Description It is commonly accepted in free market economies that the availability of leasing facilities not only stimulates the growth of a country’s economy but also are fundamental to its development in terms of employment and subsequent revenues from tax. As leasing tends to be asset based financing, a potential lessee can acquire critical assets for his business and spread the cost of ownership over the life of the asset*65 thus leaving his banking facilities to be used for working capital*66. The use of the asset should create wealth for the lessee and enable him to employ additional staff to operate the asset. The additional income from the use of the asset will be taxable and the additional employees required to operate the asset will also pay tax on their enhanced incomes received from the lessee.

In economies where companies operate in the informal (“grey or black”) markets, it has been noticed that there often is a visible move into the formal (“white”) economy because, although leasing companies normally require less securities than banks, they do still require tangible proof of legal incomes to support the cash flow required to make the repayments of the leasing rentals.

Leasing companies tend to use three key indicators when assessing risk: A customer’s ability to repay

o This is usually derived from financial information presented by the lessee A customer’s willingness to repay

o This is usually derived from past repayment behaviour of the customer either with the leasing company itself or with other financial institutions or trade creditors

Its equity in the asset to be leased o The leasing company will always assess the future remarketing opportunities of

a leased asset in the event that it must repossess and resell the asset. 2. Creating an environment for leasing Many governments have promoted leasing as a way of encouraging investment. But leasing offers other benefits: Leasing provides an alternative means of financing projects and may provide competition to other providers of finance for projects, which ultimately will be to the benefit of entrepreneurs by ensuring that the cost of finance remains reasonable. It also introduces businesses and financiers to innovation, such as cash-flow-based credit analysis. Moreover, leasing is a product that was asked for by entrepreneurs in the questionnaire undertaken for this project. Even though leasing does not currently exist in Syria in a form that is comparable to the service more generally available in free market *65 Usually, a bank loans to purchase capital assets have durations shorter than the life of

the asset, resulting in higher annual capital repayments in the early years. *66 Usually, loans from banks for working capital are more readily available or more simply

procured than for the purchase of capital assets. Moreover, the collateral requirements are often less onerous for short-term lending than for long-term loans.

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economies around the World, the introduction of this financial service to Syria may still be relatively straightforward and quick. Where leasing seems to be currently available in Syria, it is mainly with respect to properties. Three Islamic banks are intending to set up in Syria in the near future. The Islamic bank product “Ijara” is similar to leasing, although there is no interest component, rather the Islamic bank “leases” the product to the customer for a fee, which includes a mark-up over and above the purchase price, to reflect the service provided as well as a return for the bank. The fact that there are Islamic banks operating in Syria does not mean that there is longer any scope for a specialised leasing company or that the conventional banks operating in Syria cannot also offer leasing. The two critical issues for the development of leasing as a financial service in Syria are legislation and education: Legislation:

o Both the leasing companies (lessors) and their clients (lessees) must be comfortable that the terms and conditions of any contractual relationship, existing between these two parties, is defined in legislation that is both specific and relevant.

o The critical parts of any leasing legislation must include the clear definitions of: Lessor Lessee Financial leasing Operating leasing Repossession

o In addition to these definitions, any legislation that is imposed on the lessors and lessees must also either specifically define or alternatively refer to relevant taxation issues. Lessor: corporation tax treatment on received leasing rentals

from i) financial lease agreements and ii) operating lease agreements

Lessee: corporation (or personal) tax treatment on paid leasing rentals from i) financial lease agreements and ii) operating lease agreements

Depreciation: the amount, beneficiary and timing, and/or writing down allowances

VAT (value added tax): although this tax does not currently exist in Syria, it is believed that it will be developed within the next few years. The payment and recovery of VAT payments by both lessor and lessee should be a simple matter to define and administer, but many state authorities in other developing countries have given this tax so little consideration when creating legislation that, in several countries, the VAT legislation has become a barrier to entry for leasing companies. (See the Section 6.2 on VAT below.)

o The legislation should not only be written in a very clear and transparent

manner must also be able to be consistently interpreted. Courts and court officials who are called on to use the legislation in the event of a

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dispute between a lessee and his lessor must be bound to deliver verdicts in such a manner that reflects the outcome that was intended by the writers of the legislation. Other countries have created leasing legislation that has initially attracted leasing companies to invest, but has also seen their swift departure when the legislation has been badly interpreted by court officials or unreasonable delays have occurred in the court process thereby delaying the leasing company’s ability in claiming for losses against a lessee.

Education:

o If leasing is to become a new financial service within Syria, it is critical that all parties involved in a leasing transaction fully understand the fundamental issues relating to leasing.

o Parties involved in a leasing transaction are: The lessor – the leasing company The lessee – the customer or client of the leasing company,

which can be a private individual or a company The funder – the person, company or institution providing the

funds to the leasing company The asset supplier – the person or company that sells the asset

to the leasing company. The insurance company – the company that carries the

insurable risk on the asset.

3. The key stages of a leasing transaction Most leasing transactions will commence with an individual or representative of a company negotiating the purchase conditions of an asset with a supplier of this asset. This supplier may be within the borders of Syria or outside its national boundaries. The customer, having decided to use leasing to finance the acquisition of the asset, will approach a leasing company (or of course several within a competitive market) and enter into negotiations with the leasing company.

EquipmentSupplier Negotiation of price

1 Customer

Leasing Company

EquipmentSupplier

2 Customer

Negotiation ofLeasing leasing termsCompany

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If the leasing company and the customer can agree the terms and conditions of the lease agreement, a leasing contract will be signed by both parties and the customer will pay the leasing company the required initial payment on the lease (also variously known as a down-payment, advance payment, deposit or up-front payment) and probably, as well, a transaction fee.

The supplier of the asset will raise an invoice in favour of the leasing company and will pass title (ownership) of the asset to the leasing company when …. the leasing company pays the supplier for the equipment (at this time the asset will be delivered to the customer).

The customer is then obligated to make regular repayments to the leasing company to enable him to retain the usage of the asset.

EquipmentSupplier

3 Customer

Lease agreementLeasing signed and initialCompany rental paid

EquipmentSupplier

Invoice passing title

4 Customer

Leasing Company

EquipmentSupplier Delivery of equipment

Payment for equipment

5 Customer

Leasing Company

EquipmentSupplier

6 Customer

Regular leaseLeasing rentals paidCompany

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4. Leasing: a financial service

Leasing companies are similar to banks in as much as both institutions lend money to their customers. However the similarities tend to end at this point. Leasing companies are asset-based financers. Furthermore, leasing companies do not accept deposits from their customers. Moreover, leasing companies tend not to be regulated by Central Banks (mainly because they do not accept deposits).

Although leasing companies tend to charge slightly higher interest rates than banks do, this is justified by the leasing companies’ attitude to balancing risk and reward. Banks will always maximise the available security when making lending decisions and tend towards taking collateral over a customer’s assets far in excess of the value of any loan or facility that they may grant thus reducing a borrower’s capacity to raise external funds. In most leasing agreements, the leasing company will only have the value of the asset being financed as its security in return for providing a leasing facility to its customers*67. However, when the asset value is deemed low by the leasing company or where the customer’s creditworthiness is below the acceptable benchmark, the leasing company may ask its customer to provide additional security. In this respect the leasing company will more resemble a bank in its attitude to “lending”.

Standard products offered by leasing companies

4.1. Financial lease

This tends to be the most commonly available product in most leasing markets. Its attractiveness to both lessor and lessee varies from country to country depending upon various issues; such as tax, depreciation and VAT. However, it is still possible to give a standard definition:

The lessor will purchase an asset from a supplier for a value and within conditions negotiated between the supplier and the lessee

The lessor will become the legal owner of the asset The lessee will have the legal right to use the asset for the duration of the

agreed lease period in return for making prompt leasing repayments to the lessor for agreed amounts

The asset may be recorded on either the lessor’s or the lessee’s Balance Sheet and depreciated or written down at legislated annual rates (leasing legislation in most, but not all, countries usually states that the asset will be taken to the lessee’s balance sheet)

The leasing rentals can be defined thus:

o The initial rental (down-payment) – a payment made by the lessee to the lessor (although in some situations this payment may be made by the lessee to the asset supplier) before the lessor makes full payment of the asset’s worth to the supplier. The amount of this initial rental is used as a risk-mitigant by the lessor and is usually driven by the perceived value and resale ability of the asset and the creditworthiness of the lessee. There are no preset rules regarding the amount or percentage of this initial rental*68.

*67 This feature is dependant upon legislation enabling the lessor to recover his asset from

the lessee with a minimum of trouble and to be able to re-lease the asset to another lessee.

*68 In truth, the required down payment for a lease finance, which is usually about 30% of the cost of the asset, may well be as daunting as providing collateral. However, there is a tendency for collateral against loans to remain mortgaged for the life of the loan and is

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o The leasing rentals – payments made by the lessee to the lessor on an agreed regular basis (usually monthly, but may be quarterly, semi-annually, annually or irregular – for instance, only in the summer months).

The rentals may be for a fixed amount if the interest rate being charged by the lessor is at a fixed rate; or for a variable amount if the interest rate being charged is variable. In the case of variable rates, the lessor’s margin should be fixed with a benchmark interest rate, for example 3-month Euribor plus 4%, forming the variable element.

The rentals may be considered to be composed of the following parts: Capital repayments – a percentage of each rental - will

be the repayment of the original capital amount borrowed by the lessee. Although the total value of each rental will remain constant, the amount of capital being repaid will increase with each rental and consequently the amount of interest being repaid will reduce

Interest payments – interest is repayable on the outstanding capital

VAT – this is addressed in detail below. The financial lease agreement will be entered into by both the lessor and lessee

for a pre-agreed period of time, during which time the lease rentals paid by the lessee will constitute 100% repayment of the capital value of the asset plus interest. At the end of this period of time, there are several possibilities for the next stage of the lease transaction: o The pre-agreed period may be defined as the “Primary period” and the

lessee may choose to continue his unbroken usage of the asset by entering into a “Secondary period” of lease. Usually the lessee will pay the lessor a “small” leasing rental usually annually (in advance). This may vary from the equivalent of 1 Euro to 1% to 5% of the asset’s original cost. This secondary period may last until the asset is no longer required by the lessee or the lessee chooses to dispose of the asset.

o Disposal of the asset: The lessee is normally obliged to find a willing buyer of the asset.

The ownership of the asset will be transferred from the lessor to the willing buyer for a value negotiated by the lessee. The lessor will receive full payment of the agreed value and will then transfer an agreed percentage of this value to the lessee. This percentage will form part of the original financial lease contract and usually varies between 100% and 75% being returned to the lessee.

An alternative to the above is that, at the end of the (Primary period of the) lease, the lessor will sell the asset directly to the lessee again for a pre-agreed value, usually based on a small percentage of the acquisition cost, rather than on the perceived market value at the time of the transfer.

Tax issues:

often a higher amount than the down payment owing to the difficulty of recovering collateral and the possibility of its loss in value of time.

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o These vary greatly from country to country but the version described in the second bullet point below is probably the more common tax treatment of financial leasing. If the leasing company takes the asset onto its balance sheet

then it will claim any depreciation or writing down allowances. In this situation, the lessee will normally be able to deduct the full value of the leasing rentals paid during a taxable period (including any initial rental) as a business expense. The lessor will treat the full value of the incoming lease rentals as business income.

If the lessee takes the asset to his balance sheet then he will claim any depreciation or writing down allowances. In this situation, the lessee will normally be able to deduct only the interest element of the leasing rentals paid during a taxable period as a business expense. The lessor will treat the full value of the interest received from the lessee as business income.

4.2. Operating lease*69 This product has rapidly gained in popularity in the more established global leasing markets. Again, like financial leasing its attractiveness to both lessor and lessee varies from country to country depending on various issues, such as tax, depreciation and VAT; although, of all of these issues, tax tends to be the determining force behind a lessee’s decision to enter into an operating lease agreement. The typical definitions of operating leasing are given below in the same format as those above for financial lease to enable easy comparison: The lessor will purchase an asset from a supplier for a value and within

conditions negotiated between the supplier and the lessee The lessor will become the legal owner of the asset The lessee will have the legal right to use the asset for the duration of the

agreed lease period in return for making prompt leasing repayments to the lessor for agreed amounts

The asset will be recorded on the lessor’s Balance Sheet and depreciated or written down at legislated annual rates

The leasing rentals can be defined thus: o The initial rental (down-payment) – a payment made by the lessee to the

lessor (although in some situations, this payment may be made by the lessee to the asset supplier) before the lessor makes full payment of the asset’s worth to the supplier. The amount of this initial rental is used as a risk-mitigant by the lessor and is usually driven by the perceived value and resale ability of the asset and the creditworthiness of the lessee.

*69 Another form of Operational Leasing relates to customers leasing factories or

production lines on which to produce their own goods. Such forms of leasing have been of value in the countries of Eastern Europe where West European companies have not wished to invest money to acquire assets and did not believe that the management of the East European companies could produce to their requirements.

Hence, the West European companies have leased, sometimes, the whole factory and, sometimes, just some production lines and, while retaining the workers, have installed their own management, supervisors and quality control. Such possibilities exist in the Syrian textile sector, but such operational leasing is not the focus of this section of the report.

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There are no preset rules regarding the amount or percentage of this initial rental

o The leasing rentals – payments made by the lessee to the lessor on an agreed regular basis (usually monthly, but may be quarterly, semi-annually, annually or irregular – for instance, only in the summer months).

o The rentals may be for a fixed amount if the interest rate being charged by the lessor is at a fixed rate or for a variable amount if the interest rate being charged is variable. In the case of variable rates the lessor’s margin should be fixed with the benchmark interest rate forming the variable element (for instance, 3 month Euribor plus 4%).

o Although the rentals, strictly speaking are composed of both capital repayments and interest payments, the operating lease rentals are more strictly defined as payments for the uninterrupted hire of the equipment. (In some countries operating leases are defined as hire agreements.)

o All rentals will attract VAT. The operating lease agreement will be entered into by both the lessor and

lessee for a pre-agreed period of time during which time the lease rentals paid by the lessee will constitute less than 100% repayment of the capital value of the asset plus interest. At the end of this period of time, there are several possibilities for the next stage of the lease transaction:

o The lessee may request an extension of the period of the operating

lease agreement. The lessor is normally not obliged to grant this extension but, if agreement is reached, then the lease will continue for a further defined period with the amount of the lease rentals for this extension being negotiated by the lessor and lessee at the time of the agreement to extend.

o Normally at the end of the operating lease period, the asset is returned to the lessor by the lessee and the agreement is deemed to have been successfully completed. The lessor will now sell the asset to a willing buyer and will retain 100% of the sale proceeds. At the beginning of the operating lease agreement, the lessor has taken a decision about the “future market value” of the asset at the end of the operating lease period. The lease rentals will, therefore, have been calculated on the basis of the lessee leasing the original value of the asset (minus any initial payment) minus any future value determined by the leasing company (with the lessee only paying interest on the amount of the perceived future value of the asset). As the lessee does not benefit from any sale proceeds from the disposal of the asset at the end of the operating lease agreement, this usually results in operating lease rentals being lower than those for a “fully paid-out” financial lease.

In most established operating lease markets, a lessee might be given the choice of entering into an agreement either with or without service and maintenance of the asset being leased. In other words, for a fixed regular leasing rental, the lessee not only receives the uninterrupted usage of the asset, but also benefits from the asset being regularly serviced and repaired in the event of breakdown. The service and maintenance element of this agreement will be provided not by the lessor but by a third party, which is usually the original supplier. The lessee’s leasing rentals are increased by an amount that will compensate the lessor for providing this service. Normally, the lessee is only required to pay for the cost of fuel (in the event that the asset has an engine) and day-to-day maintenance tasks.

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4.3. Hire Purchase This is another form of financing that is usually offered by a leasing company. The product is most easily and best described as a secured loan with the security being the asset, which is the subject of the Hire Purchase agreement (plus any additional securities that may be required as described above). Briefly, the critical points of interest regarding Hire Purchase are as follows: The customer purchases the asset from the supplier (as with a financial lease

agreement) The asset is placed on the customer’s balance sheet for depreciation purposes The repayments comprise capital and interest with the interest payable element

usually being a taxable expense for the customer and taxable income for the leasing company (lender)

At the end of the agreement period, title (ownership) in the asset passes from the lender to the customer (sometimes in consideration of a small administration fee).

5. The potential to develop of the leasing sector in Syria In order to ensure that Syria becomes attractive for both entrepreneurs and existing financial institutions to create a leasing sector, the Syrian Government must make the business environment attractive to potential Syrian leasing companies. This will require the writing of specific leasing legislation to enable both the lessor and lessee to operate in a sector with a full understanding of their requirements and also of their legal rights and obligations. Although some countries operate very successful leasing sectors with no specific leasing legislation (for example, Latvia) only being dependant on the wording of their Civil Code (as this Civil Code is deemed by leasing companies to provide sufficient security), it would be preferable if the Syrian Government developed its own leasing legislation. This need not be an onerous task as many leasing laws exist in the legislation of other countries that could be adapted for Syrian circumstances. Most of the recent leasing laws that have been developed in the countries of the Former Soviet Union have simply replicated laws that are in existence in parts of Western Europe and other parts of the enlarged European Union. It is vitally important that the Syrian Government develops its leasing legislation in co-operation with those organisations that will be bound by it. Too often legislation has been written by professional lawyers who do not have the specific experience of the vagaries of the leasing sector with the result that it is not possible for a leasing company to feel confident enough to set up. A particular benefit of leasing in Syria would be its similarity to certain Islamic banking products, respectively Ijara and Murabaha. Islamic banking requires, among other things, that the financing does not contain a usury (interest) element and the lender must accept some risk in return for his profit. Hence, the Muslim may view the transaction as the provision of a product for which the lessor earns a profit, while the non-Muslim may view the transaction as a capital charge for the product and interest charged on the capital. However, to be acceptable to a Muslim, the lessor has to accept some risk in that the lessee may cease to be able to pay the charges before the end of the contract. It is normal that most people brought up in a particular society tend to find sympathy with the body of beliefs held by the majority. Hence, in a Islamic society, there will be a feeling that leasing, where there is a charge or mark-up spread over the life of the lease contract and not a cost described as interest, is a preferred option for accepting financial support over bank loans that bear interest.

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Successful leasing companies have a huge appetite for funding so much so that the highest percentage of leasing companies across the World are subsidiaries of banking institutions. There are, of course, exceptions, such as insurance companies creating leasing subsidiaries and also, in the newer leasing markets, local businessmen have developed their own leasing companies using as collateral the leased assets as well as additional security from their other businesses for bank or other financial institution funding. International institutions, such as the European Investment Bank, the European Bank for Reconstruction and Development and the International Finance Corporation, have invested quite heavily into new start-up leasing companies in countries where they believe there to be a requirement to create a leasing sector. Whilst the population of Syria at more than 18 million people, presents international leasing companies with a sizeable market to sell their products and services, it should be noted by the Syrian Government that these companies have a choice of many other markets in which to invest their relatively scarce equity. It will probably, therefore, be necessary for the Syrian Government to create an environment that will attract international leasing companies or international investors. However local banks and local entrepreneurs will be more than able to create a leasing sector if they receive the required guidance and advice, the correct legislation, and access to sufficient funding. Other governments have attracted international investors to develop leasing businesses in their countries by offering incentives such as: zero or reduced rates of corporation tax for a period of time (say, three to five years) for leasing companies which invest a minimum amount of equity (say € 500,000 to € 2 million); or accelerated depreciation for leasing companies, such as 100% first-year allowances on the purchase of assets for leasing. If an acceptable environment can be created within Syria by developing good legislation and also by educating the necessary people and institutions about the advantages of leasing, then there should be no reason why the leasing sector in Syria should not develop like that in other countries which have introduced leasing to their financial markets in the last 10 to 20 years. These countries have benefited from a steady growth in the number and variety of leasing companies and also from a development in their professionalism in the market as competition has created not only an increase in demand for leasing products, but also a demand for better service levels. The first leasing companies to establish in some countries have been those either owned by local banks or by local entrepreneurs who had sufficient borrowing capacity with banks in order to enable them to fund their leasing companies. The next stage of development tends to be the creation of leasing companies as subsidiaries of international banks that have entered the financial sector. As leasing becomes more readily available and more professional then international equipment vendors identify opportunities for readily available finance to enable them to sell more of their products. These international vendors, usually in the car or truck sectors, will either create joint ventures with locally established leasing companies or will create a subsidiary of their own wholly-owned leasing company. It may also be possible for the Government to kick-start leasing by creating a fund to be managed by a reputable international leasing company. There seems to be some Syrians with surplus funds to invest in projects and some others from the Region who are willing to invest in Syria. These potential investors may be interested in investing in a fund which would be managed by a reputable and experienced company. On the other hand, international leasing companies may not be too willing to enter the Syrian

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market until they have seen the legislation in place and operating successfully. However, they may well be willing to manage a fund dedicated to leasing which has the sanction of the Government. 5.1. Typical sectors that will benefit from the creation of a leasing environment

in Syria Leasing services, unlike banking services, tend to be offered at “point of sale”. In other words, a salesman who is negotiating with a potential customer to sell his products will offer leasing as an alternative form of payment to his customer. The salesman will have been provided with adequate training in the advantages of lease financing to enable him to gain the interest of the customer before formally introducing him to the leasing company’s sales staff. In established leasing markets, the following products constitute a majority of the leasing volume (most leasing companies will lease used equipment as well as new equipment): Cars Construction equipment Aeroplanes Trucks Agricultural equipment Ships Trailers Fork lift trucks Real estate Buses Computers and IT

equipment

Production lines Photocopiers Leasing companies will approach the market in clearly defined ways in order to win new business volumes. Customer direct – this involves the leasing company approaching individual

customers directly and offering their leasing services Equipment dealers – a leasing company will negotiate terms and service level

requirements with these dealers who will introduce “their” customers to the leasing company.

Equipment manufacturers – many international manufacturers of equipment will negotiate a relationship or partnership or even joint venture with a leasing company in a new country and will then introduce all of its customers directly to the leasing company, usually on an exclusive basis.

Bank introductions – if the leasing company is a subsidiary of the bank then the bank management will consider leasing to be an additional product to be sold by the bank sales team, albeit through a separate company or legal entity. The key reason that banks do not tend to offer leasing directly is usually driven by VAT issues.

5.2. Target customers This may be quite simply stated as all creditworthy individuals and businesses operating or resident in Syria. In slightly more detail, these customer types include: Private individuals – leasing is usually attractive in the passenger car and

consumer goods sectors Small and Medium Enterprises (SMEs) – the development of this sector is

critical to the growth of Syria’s economy. Leasing will be attractive for these companies who wish to acquire an asset, but spread the cost of ownership over

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its realistic lifespan. Small enterprises and new start-ups often are interested in leasing second-hand machinery and equipment because the lease charges are usually less than for new items.

Corporations – although these larger companies, both national and international, have more easy access to bank financing, leasing offers them an alternative with their choice between bank and leasing usually being driven by tax issues.

6. Value Added Tax (VAT) issues VAT has been mentioned several times in the above narrative as being a critical issue to be properly legislated in order for leasing companies to operate successfully. Although VAT currently does not exist as a tax within Syria, it is believed that it will be introduced within the next few years. VAT normally affects a leasing transaction at many stages, as illustrated below. (A VAT rate of 15% has been assumed for the following examples.) 6.1. Purchase of an asset The supplier of the equipment will sell (invoice) to the leasing company for the price agreed between the supplier and the lessee (and accepted by the leasing company) plus VAT. The leasing company will pay the VAT to the supplier and the supplier will refund the VAT to the State. The leasing company will then reclaim the VAT from the State. Assuming VAT is 15% Invoice price 10,000 plus 1,500 VAT = 11,500 Leasing company pays supplier 11,500 for the asset Supplier refunds 1,500 to the State Leasing company reclaims 1,500 from the State Supplier has 10,000 Leasing company has an asset worth 10,000 The above example is simple and straightforward. Some observers looking at this example for the first time may ask the question: why not ignore the VAT completely or make the VAT rate 0% because, as in the above example (which is normal in most leasing markets), 1,500 moves from the leasing company to the supplier to the State and back to the leasing company. However, making VAT 0% would mean that anybody claiming to be a lessor would avoid paying the tax and it would be up to the Government inspectors to check each time whether the action was correctly made. Making the transaction subject to VAT, puts the onus on the purchaser to prove that he is a lessor. Nevertheless, if VAT is imposed by the State on the purchase of assets, then it is absolutely critical for the leasing company to be able to reclaim the VAT paid to the supplier in a timely manner. This should be within a maximum period of 90 days. Some governments use VAT as a form of free financing of their State budgets by either withholding the VAT repayments to the leasing company or giving them “tax credits” in lieu of cash refunds or insisting that the leasing company goes to Court every time it wishes to reclaim VAT. All of these actions would simply deter leasing companies from setting up in the Country.

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6.2. Financial Lease

A lessee wishing to enter into a financial lease agreement with a leasing company for the above asset, provides the leasing company a 10% initial payment followed by 24 monthly payments of 400. There are different options available for the treatment of VAT on the above example

Option 1

The lessee pays all of the VAT on the cost of the asset to the leasing company, ie 1,500, at the start of the lease. No more VAT will be payable on any of the lease rentals.

The leasing company refunds the 1,500 to the State. The lessee reclaims the 1,500 from the State.

Option 2

The lessee pays 1,590 VAT to the leasing company being the VAT on the total of all of the leasing rentals (ie capital plus interest) at the start of the lease. No more VAT will be payable on any of the lease rentals.

The leasing company refunds the 1,590 to the State. The lessee reclaims the 1,590 from the State.

Option 3

The lessee pays 150 VAT to the leasing company at the start of the agreement, being the VAT on the 10% initial payment then pays 60 VAT each month for 24 months.

The leasing company refunds the 150 and the 24 times 60 to the State at the time of receiving the cash from the lessee.

The lessee reclaims the 150 and the 24 times 60 from the State at the time of paying it to the leasing company.

6.3. Operating lease

The treatment of VAT is more simple than financial leases in most leasing markets. Using the same example as above, then Option 3 will be the system used for payment and receipt of VAT.

7. Positive Arguments

Leasing has worldwide addressed an unmet demand from new SMEs and attracted borrowers away from traditional bank loans. It offers advantages to all parties:

7.1. The Lessee

Although leasing is a high-spread business, it offers potential advantages to the lessee:

Simpler security arrangements: Because ownership of the items being leased remains with the lessor means that the lessor is less interested in track record for security and more interested in a project’s cash flow potential, SMEs can generally access lease finance more easily than bank loans.

Availability: In developing countries leasing is often the only form of medium- to

long-term finance available for purchasing equipment.

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Convenience: Leasing often can be arranged more quickly and simply than conventional loan financing because security over assets outside of the project often is not required by the lessor.

Lower transaction costs: Despite the relatively high mark-ups expected by leasing companies, the costs of assigning collateral, documentation, and slower processing times for bank borrowing can be significant, particularly for smaller borrowers.

Comparatively little cash required: Leasing can finance a higher percentage of the capital costs spent on equipment than banks would normally agree to, partly because the down-payment required by lessor is often less than the amount of equity required before loans are granted. This is partly due to the more secure title the lessor has over the equipment being leased.

Flexibility: Leasing contracts are often structured to meet the expected cash flows of the lessee; there is a tendency for interest on bank loans to be paid on specified calendar days.

Tax incentives: In many countries lessees can offset their full lease payments against income before tax, compared to just the interest on bank loans. Furthermore, the lessor may pass on tax benefits associated with their depreciation to lessees via reduced financing costs. Governments often grant special tax incentives to leasing because they recognise that it enables new small firms to access financing for investment.

7.2. The Leasing Company (Lessor)

Ownership of the asset: Gives the lessor strong security. In countries where weak collateral laws hinder bank lending, leasing offers the advantage of (often) not requiring collateral beyond the security of leased asset itself, and of simpler repossession procedures, because ownership of the asset lies with the lessor.

Dedicated use of funds: Because the lessor purchases the equipment directly from the supplier there is no opportunity for the lessess to (mis)use the funds for other purposes.

Relatively simple documentation: Because ownership of the assets remains with the lessor for the duration of the contract, the contractual arrangements are simple, leading to lower transaction costs, allowing leasing companies to achieve high leasing volumes efficiently.

Lighter regulation: Because leasing companies are not usually deposit takers they tend to be less tightly regulated than banks.

Flexibility: Moreover, lessors have a good knowledge on how best and where to dispose of assets repossessed from defaulting borrowers. They are, in most cases, able to lease reclaimed assets to others and, in this way, contain their credit risk better than banks. Hence, the exit cost from a leasing contract to an entrepreneur may not be as expensive as the cost of disposing of the same assets, if bought directly by the entrepreneur.

Acceptability: In Islamic countries, leasing is acceptable as an Islamic product and so those entrepreneurs, who are concerned about such matters, may find leasing inherently attractive, even if it were to be more expensive that interest-bearing forms of finance.

8. Negative Arguments

The idea of leasing may well be attractive, but in practice it will be difficult to attract an experienced leasing company to set up in Syria. This may only be partly true. The principle of leasing is also an Islamic banking product and three Islamic banks are currently interested in setting up in Syria. However, the type of leasing being

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discussed here is leasing assets to enterprises; the leasing that the Islamic banks and others may be more interested in is consumer durable leasing. 9. Pre-requisites:

Arising from international experience, following six factors are necessary to enable leasing companies to flourish: (1) Good, Experienced Management: A high standard of cash-flow-based credit

analysis and supervision of clients, complemented by follow-up and equipment insurance procedures are critical.

(2) Competent partners: In many markets where leasing is being introduced, it is important to have an active, committed and competent foreign technical partner (at least contractually committed or, preferably, as equity investor) who should: establish and monitor systems and procedures; train local staff; advise on lease pricing, marketing and administration; and ideally second to the project the first general manager.

(3) Funding: The single biggest obstacle to the growth of a leasing company is often access to long-term local currency funds. Access to term deposits from insurance companies or pension funds or to a local bond market helps overcome this problem.

Moreover, every leasing company will have to raise finance to purchase the assets to be leased. Again, those with capital to invest may find investing in a leasing company more acceptable than in a conventional bank. Hence, the finance available for leasing may be fairly easily raised and, possibly, more easily than for traditional banking.

(4) Asset-liability matching (ALM): Leasing companies must match fixed-rate lease with fixed-rate term funding, or if only floating rates are available (locally or internationally), it need a regulatory framework that allows periodic adjustments of lease rates.

(5) Attractiveness to lenders: Given their high debt-equity ratios, leasing companies must remain attractive to lenders. Security sharing agreements that establish equal rights to a pool of the leased assets, collateralised for the senior lenders are often used for this purpose.

(6) Regulatory framework: Leasing companies need a regulatory, legal and fiscal environment that at least provides equal treatment compared with other sources of capital investment financing. Clear, simple and effective legal procedures are important, particularly:

Clarity in defining a lease contract, leased assets, and responsibilities and rights to a lease contract: There needs to be definitions of what constitutes a lease transaction, a leased asset, and the responsibilities and rights of the lessor and lessee. Liability: Clarifying responsibility for liability of third-party losses arising out of the operation of leased assets is important because ownership and use of an asset is separated in Leasing. This is particularly relevant with assets such as vehicles because the risk of causing third-party losses. Priority of lessor´s claim over leased assets: The basis for leasing advantage over lending if the lessee/borrower becomes bankrupt. As the equipment owner, the lessor´s claim to the asset should be superior to any claim creditors may have on the lessee.

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Repossession: Easy and rapid repossession of leased assets is one of the main advantages a lessor has compared with lenders. The legal framework should permit non-court repossession, so that lessors can repossess leased assets without legal proceedings, as long as the lessee does not contest the repossession. When repossession is legally and judicially easy, lessors can lend to riskier businesses and price their leases with a lower risk premium, making leasing available more cheaply.

10. Recommendations Leasing is a worthwhile financial product to be introduced into Syria,. Because of the way leasing is structured, there is a tendency for leasing companies to agree to lease more quickly than traditional banks agree to lend. Again, because lessors tend to look more carefully at the project and the ability to generate funds to pay the lease charges than bankers seem to do, leasing may assist more new entrepreneurs with good project ideas, but who may lack collateral, into business. Hence, leasing is a simple but very effective financing product that has a good future in Syria. In order to create a leasing sector within Syria, the Government must work closely with local and international banks; with international financial institutions; and with international equipment vendors to create an environment and legislative system that will bring this form of financing to the individuals and businesses of Syria. This process need not be a long one. Legislation that operates successfully in other countries can be adapted for use in Syria. The technical know-how required to develop leasing companies (within critical areas such as: risk assessment, funding, sales and marketing, and collections) can be brought to Syria to work with the Government and also potential lessors. The Government can develop incentives to bring key international financial institutions and vendors to Syria. Specifically, there are a series of recommended steps that the Government must undertake to make leasing a realistic option for entrepreneurs. They are: 1. The Law needs to be reviewed in order to ensure that leasing is legally possible

and that the ownership of the assets being leased clearly and unequivocally remains with the leasing company for the duration of the lease. It is important that an entrepreneur cannot argue in court to be allowed to retain the assets, even if they remain legally owned by the leasing company, because, without them, the enterprise would cease and the employees would be redundant. That may sound harsh, but no leasing company can function unless they can be assured of regular and timely payments of the agreed amounts. Most leasing companies would be sympathetic to customers in temporary difficulties for the simple reason that reclaiming and then disposing of the assets would usually be more expensive in effort and cost than negotiating a compromise solution.

2. The Government should consider what incentives could be offered to attract

leasing companies to set up in Syria; Ways that the Government could act as a catalyst, rather than waiting and hoping that private investors will set up, are as follows:

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1. The Government could offer to subscribe, as seed capital, a minority equity sum (say 10%) in the first two leasing companies, which would be orientated to leasing buildings and equipment to entrepreneurs, to set up in Syria.

2. If it were possible for the Government to invite some international finance institutions also to invest, the attraction of the Fund would be increased and, similarly, the interest of international leasing companies in managing the project would increase.

There would be an added advantage in securing the management by an international leasing company in that it could, and most probably would, promote its services in Syria to its customers in other parts of the World. Hence, the leasing company would assist in promoting Syria as an investment location.

11. Implementation Implications For leasing to take off in Syria in the way that has been described, it is absolutely necessary for the Government to review the Law in order to see if it is necessary to pass a special law on leasing, which is the possibly case. Similarly, it will be important to provide some incentives, and those mentioned above in terms of the treatment of tax would seem to be the most important. 12. Time-Frame The time frame for this project need not be long. The main constraint would seem to be the review of the legal requirements and the drafting and passing of a law, if needs be. However, the time frame for such work should be no more than one year, if there is the political commitment. The creation of a fund, the negotiating with international finance institutions and major investors and with potential management companies could be started before the laws are passed or amended. Hence, within one year, the fund could be registered and starting to attract investors, if not actually starting to provide assets under leases. Within two years, the Fund and other investment companies could be operational.